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

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021