CW Group says unable to redeem SGD bonds; faces statutory demands from lender

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, 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 and US$14.5 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 10:44 am HK time.