Sino Grandness

[Ken123456]

Anyone can answer my query :

I am wondering if let say if a counter is suspended, what happen to short seller who have their position open???

[greengiraffe]

Simple call up yr broker for an explanation... failing which call SGX...

Anyone can answer my query :

I am wondering if let say if a counter is suspended, what happen to short seller who have their position open???

[Adagio]

Can banks of Sino Grandess or Garden Fresh call bank the loans if they are convinced that the businesses are questionable?

DBS Bank (China) also is listed in Sino Grandness annual report as a principal banker.

Can existing bondholders of Garden Fresh call for early redemption too?

Does it imply anything that none of the above parties have asked for their money?

[chinafarmer]

Can banks of Sino Grandess or Garden Fresh call bank the loans if they are convinced that the businesses are questionable?

DBS Bank (China) also is listed in Sino Grandness annual report as a principal banker.

Can existing bondholders of Garden Fresh call for early redemption too?

Does it imply anything that none of the above parties have asked for their money?

Check out China Essence. If one had based his investment decision on what the bankers and bondholders did, he would be staring at a negative NTA company today.

[Max12345678]

Share price still continue to slide. How come the Chairman and CEO have not come in to buy to support the price?

[specuvestor]

I do not believe that Goldman was acting as a middleman/agent and here are 2 reasons why.

1. 2 years ago when Goldman Sachs subscribed to the bonds, a Goldman Sachs representative was also given a board position in Sino Grandness. I believe this implies that the bonds were subscribed by Goldman Sachs itself and not as an agent/middleman. Otherwise, why would Goldman be given a board seat simply for acting as an agent?

2. Furthermore, as we know, both Goldman Sachs (about 80%) and SHK (about 20%) had subscribed to the bonds. We also know that this time round that about 80% of bonds were extended while the remaining 20% were redeemed. I have been informed that the 20% redeemed were from SHK due to their funding requirements - the remaining 80% which has been extended was all Goldman. If Goldman was acting as a middleman, it is extremely unlikely that ALL the investors it was acting as a middleman for would have unanimously chosen to extend while ALL SHK investors would have chosen to redeem (on top of the fact that I have been informed that SHK itself has chosen to redeem due to fund expiry dates and requirements it had to meet, implying also that it was acting for itself). The unanimity implies that it is simply 2 entities making the decisions - Goldman and SHK themselves.

Based on the structure of the CB IMHO it is likely a structured Pre-IPO deal with Goldman in exchange for credit

Technically the GS bond, as felix pointed out, is not a CB, it is an exchangeable bond GURANTEED by SinoGrand. Either way shareholders of SinoGrand will be marginalised based on the strike price of the exchangeable bond. It is like a credit facility by GS in exchange for pre-IPO entry of Garden Fresh, which traditionally will be priced around like 10% of IPO price.

On a more general basis, Goldman could in fact be an "active" agent and principal just like a CDO deals. Principal because they may have kept some of the structure in inventory, "active" agent because if you packaged it into a structure you have to be the front for the clients as you cannot segregate the interest in the structure. It is actually not so straightforward

In addition, like many of us had said, redemption is also based on what bankers think is left on the table. As the old adage goes: If you owe banks $100k you are afraid of them; If you owe them $100m they are afraid of you.

[budgetier]

It is now almost the end of Oct 14, and some 2011 CBs were redeemed recently. There is no announcement/update on the proposed IPO of Garden Fresh. What exactly is the timeline/s for the IPO?

[Max12345678]

Not very good, all time low again

Vested No

Share price still continue to slide. How come the Chairman and CEO have not come in to buy to support the price?

[greengiraffe]

Just a suggestion... in view of the continued weakness of Sino Madness... perhaps it will be honourable to declare interests (vested or shorted) underpinning each posting so that all buddies can assess if there is any biasness in each postings.

Busy Body
No Vested Interests
GG

Not very good, all time low again

Share price still continue to slide. How come the Chairman and CEO have not come in to buy to support the price?

[chinafarmer]

As stated in my first post, I am neither long nor short this loquat and my position is still the same as of now.