The suspension in trading has been put in place as concerns about the company’s finances grow.
FrieslandCampina, faces losing the $30 million (€27.3m) in share capital it invested in the company in 2015.
The world’s sixth largest dairy processor – according to Reuters – will also be fretting over the $700m (€637m) it paid for 50% of Huishan Dairy’s Xiushui plant in the city of Shenyang.
ADVERTISEMENT
The dairy company said that Bank of China’s Macau branch had requested it repay the principal of a $50m (€45.5m) loan dated 28 April 2014, plus $937,363 (€853,000) interest accrued.
Under pressure
Huishan Dairy hit the headlines last year when it sold and leased back part of its herd, but its most recent troubles have laid bare the risks of excess leverage and financial engineering in unexpected quarters of corporate China.
Champ Harvest own 70.8% of the company, with Yang Kai, chairman of Huishan holding a majority shareholding in that company having pledged nearly all of the shares against the loans. If there is a default, banks could dump the shares on the market creating a downward spiral in share prices.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
The suspension in trading has been put in place as concerns about the company’s finances grow.
FrieslandCampina, faces losing the $30 million (€27.3m) in share capital it invested in the company in 2015.
The world’s sixth largest dairy processor – according to Reuters – will also be fretting over the $700m (€637m) it paid for 50% of Huishan Dairy’s Xiushui plant in the city of Shenyang.
The dairy company said that Bank of China’s Macau branch had requested it repay the principal of a $50m (€45.5m) loan dated 28 April 2014, plus $937,363 (€853,000) interest accrued.
Under pressure
Huishan Dairy hit the headlines last year when it sold and leased back part of its herd, but its most recent troubles have laid bare the risks of excess leverage and financial engineering in unexpected quarters of corporate China.
Champ Harvest own 70.8% of the company, with Yang Kai, chairman of Huishan holding a majority shareholding in that company having pledged nearly all of the shares against the loans. If there is a default, banks could dump the shares on the market creating a downward spiral in share prices.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS