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

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