In a proposal to get China Ghost Town (CNT) out of 1.1 billion renmnbi convertible bonds nightmare, the bond holder as the new financiers has imposed terms that are categorized as ‘pretty onerous’.
One prominent brokerage house in town has called that the share price of CNT will ‘snap back smartly’ with refinancing pressure out of the way.
With the resolution passed last weekend in EGM, the share price has slipped further from 7 cents to 0.55 vs 0.60 cents offer and bid range.
So, something is not ‘smart’ enough or someone get the direction wrong?
Putting a buy call in a bear market shall carry more serious check.
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