Hopson Dev (00754) to buy distressed assets from China Cinda

    Hopson Development (00754) said it agreed to co-operate with Huizhou City Yonghua Holdings Limited, a Huizhou Court-approved participant and the initial investor in the bankruptcy reorganisation of four distressed companies, to facilitate the implementation of the restructuring plan as a co-investor.
  Hopson agreed to make the acquisition of the rights to collect nine non-performing loans in the aggregate amount of about Rmb1,911 million for and on behalf of Huizhou Yonghua and finance the said acquisition by providing a loan of Rmb1,188 million to Huizhou Yonghua and, subject to the conclusion of definitive agreement(s), acquire the equity interest in one of the distressed companies.
  In August, Hopson agreed to acquire the distressed assets at Rmb1,364 million from China Cinda Asset Management Co., Ltd., Guangdong Province Branch Company.
  The collaterals include certain land use rights, residential and commercial properties and properties under development in various locations in Huizhou City and other parts of Huidong County in Guangdong Province, and certain equity interests in various companies in the PRC.
  Huizhou Xinghua is principally engaged in property development in Huizhou City in Guangdong Province. Huizhou Xinghua is held as to 70% by Huizhou City Chuangcheng Development Limited, one of the distressed companies, and 30% by Huizhou City Yuanli New Trading Limited.