CW Group says it's unable to redeem SGD bonds, faces statutory demands from lender

SINGAPORE - Hong Kong-listed engineering and renewable energy outfit CW Group expects it will not be able to repay Singapore dollar-denominated (SGD) notes and pay a final dividend to shareholders due to its inability to raise new money from investors.

In a Singapore Exchange filing on Thursday (June 21), it 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$27.4 million) and US$14.5 million (S$19.8 million) in banking and trade financing facilities from the group, its two executive directors and its subsidiary, CW Advanced Technologies Limited.

CW Group said that it was unable to sell Series 2 notes under a S$500-million multi-currency debt issuance programme due to unfavourable market conditions since April.

The proceeds from the issuance of Series 2 notes were meant to redeem some S$55.25 million outstanding from its Series 1 notes due on June 27, pay a final dividend of 2.36 HK cents per share by July 27 and settle the 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.

CW Group's shares last changed hands at 74 HK cents, down 35 HK cents as at 10.44am HK time.