Jelly-maker holds lender call

摘要

Labixiaoxin snacks croup held a lenders' call on Wednesday in a bid to reassure lenders after trading in its shares was suspended on the Stock Exchange of Hong Kong on Monday after the postponement of its annual results. Labixiaoxin, the second-largest manufacturer of jelly products in China, runs the risk of breaching a covenant on an existing U5$75m loan over the trading suspension of its shares for more than 15 days, lenders have said. The company had already held two lender calls in response to press reports before its shares were suspended on Monday. Labixiaoxin's problems highlight the growing risks of lending to privately owned Chinese mid-cap companies. More such Chinese companies have been raising offshore loans, despite recent defaults on bonds and local renminbi debt. In 2013, privately owned Chinese firms raised US$27.6bn in offshore loans, far outstripping the combined US$21bn figure for the previous four years, according to LPC data.