New | Carson Yeung’s Birmingham International Holdings' bond issue falls flat
Bond issue was not consummated and automatically lapsed on October 31
Birmingham International Holdings (BIH), the investment company of jailed businessman Carson Yeung Ka-sing, has failed in its effort to raise a HK$120 million cash lifeline through a convertible bonds issue.
In a regulatory filing on Monday, BIH said its July 31 agreement with Deluxe Crystal, a firm incorporated in the British Virgin Islands with limited liability, for subscribing to the bond issue was not consummated and automatically lapsed on October 31.
Ma Shui-cheong, the vice-chairman at BIH, said in the filing that the company’s board of directors decided not to further extend that subscription deal. It was also determined that all rights, obligations and liabilities of the parties under that agreement have ceased.
Deluxe Crystal is owned equally by Ma and BIH chairman Cheung Shing.
BIH said in July that its convertible bond issue was expected to raise net proceeds totalling HK$119.5 million, which would be used for working capital, as well as potential future investments and acquisitions. The two-year bonds carried an annual interest rate of 7.5 per cent.
Prior to that failed debt offering, BIH had conducted three successful fundraising activities to repay loans and generate fresh working capital.