Asia Aluminum Holdings became the latest victim of the financial crisis when it was placed under provisional liquidation yesterday after failing to gain enough support from bondholders in a discounted buy-back programme.
Ferrier Hodgson, the provisional liquidator, said it was undertaking an urgent assessment of the financial position and operations of Asia Aluminum in consultation with local management, creditors and other stakeholders in order to determine the optimal strategy for the business.
'We will hold a meeting and telephone conference with key stakeholders within the next few days to protect and preserve the assets and operations of the company for all stakeholders, both within and outside the mainland,' said Vincent Fok, executive director of Ferrier Hodgson.
Asia Aluminum management said the move would help it explore other corporate rescue and restructuring plans with its creditors.
The company opened a tender on February 13 for bondholders to buy back US$450 million of senior unsecured notes maturing in 2011 at US$275 per US$1,000 principal amount, a 72.5 per cent discount. The bond carries an interest rate of 8 per cent.
However, the buy-back was strongly opposed by existing bondholders, who claimed the price was too low and unfair.
