CW Group expects inability to redeem Singdollar bonds

Hong Kong-listed engineering and renewable energy outfit CW Group expects to be unable to repay Singapore dollar-denominated notes and pay a final dividend to shareholders because of its inability to raise new money from investors.

In a filing yesterday, the company also disclosed the receipt of statutory demands from its lender, Bank of China (Hong Kong), on June 4 and June 7 for the immediate repayment of HK$157.5 million (S$28 million) and US$14.5 million (S$20 million), respectively, in banking and trade financing facilities from the group, its two executive directors and its subsidiary, CW Advanced Technologies.

CW Group said that it was unable to sell new notes under a $500 million multi-currency debt issuance programme because of unfavourable market conditions since April.

The proceeds would have gone towards redeeming an outstanding amount of $55.25 million from an earlier note due next Wednesday, paying a final dividend of 2.36 HK cents per share by July 27, and settling bank loans.

The company has hired Singapore-based RSM Corporate Advisory, Morgan Lewis Stamford, Rajah & Tann and Hong Kong-based Akin Gump Strauss Hauer & Feld to work on a refinancing plan.

A version of this article appeared in the print edition of The Straits Times on June 22, 2018, with the headline 'CW Group expects inability to redeem Singdollar bonds'. Print Edition | Subscribe