China’s largest dairy operator Huishan says creditors agree to debt restructuring
Its shares plunged 86pc in Hong Kong on March 24, which came as a vindication for many of its short sellers, including Muddy Waters, that accused it of overstating spending on dairy farms by as much as US$243 million
China’s largest dairy farm operator Huishan Dairy said on Wednesday that a debt restructuring plan has won the support of more than half of its mainland creditors, representing more than two-thirds of the outstanding amount owed by the company.
The company first proposed the debt restructuring plan in July, after its shares mysteriously plunged 86 per cent in Hong Kong on March 24, which came as a vindication for many of its short sellers, including Muddy Waters, that accused the company of overstating its spending on its cow farms by as much as 1.6 billion yuan (US$243 million).
The company’s shares have been suspended from trade since that time.
Under the plan, some or all of the company’s businesses and onshore assets of Yang and his other ventures would be grouped together and injected to form a new entity wholly held by its onshore creditors.
Meanwhile, the board of directors of the new company will discuss with offshore creditors of the group and Yang’s entities on how to restructure its offshore debt.