Geong International plummets on overdue loan repayment

Geong International plunged 30 per cent after the China-focused software group announced it missed an interest payment last year.

Geong International plunged 30 per cent after the China-focused software group announced it missed an interest payment last year.

The payment, in relation to a £2.5mn convertible unsecured loan stock (CULS), was due on December 31st.

However it wasn't made until January 15th following unexpected delays in State approval of the transfer of funds.

The group said it was working with creditor Hanafin Investments to reach agreement on the repayment.

"As a result of the late payment which represents a default under the terms of the CULS, the holders, Hanafin Investments have requested immediate repayment of the CULS.

"Whilst the company has adequate resources to make the repayment it will not be able to secure the necessary approvals from [the State Administration Of Foreign Exchange of China] to do so in the short term.

"Accordingly, the Company is seeking to reach an understanding with Hanafin as to an acceptable and achievable timetable for the repayment."

The company retained £3.9m in cash at December 31st.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021