"The warrants granted to the Investor on January 29, 2008 are considered derivative instruments that need to be bifurcated from the original security. If the Warrants have not been exercised within the seven year period, then the Investor can have the Company purchase the Warrants for $17,500,000. This amount is shown as a debt discount and is being amortized over the term of the Senior Notes. For the year ended December 31, 2008, the Company amortized $1,004,677 of the aforesaid discounts, net of capitalized of interest."
could you give me a link to some verification of this information, or are you back in the booshidder mode yet again?
CHNG Director Don(g) Yang as managing director of he Abax affiliation had every reason, in his own personal interest and that of Abax, to see CHNG default on the senior notes! A 20% annualized return on investment over a period of 6 years. A performance not even Bernie Madoff could match! And, along with the default and acceleration, he was able to accomplish a CH 7 Liquidation of the company subsidiary interests located PRC, at values approximating "salvage value" rather than going concern value. Indeed, the last we know, each of the subsidiaries is a going concern. I wonder if anyone in legal or SEC system gives an aerial copulation about the rights of the American investing public. To this point it seems sadly not, to me.
and also... if you take the 25,832,666 liability at 6/30/09
and take a payoff at 6/30/14, (5 years) of $65,000,000 for the abax
and lake steet fund claims, the annualized rate of interest is much
greater than 20%. Old Fast-times Don Yang predatory lender, loan
shark, and breacher of fiduciary duty knows how the game of greed and
deceit is played.
I visited the PRC 97 (courtesy of red classmate) and saw it was the Japanese who were doing the building. The truth is what the truth is. Communist China had no capital, no infrastructure, but it did have cheap labor to be exploited by the likes of Wall Mart and others to the detriment of the American working class. Care to differ on any of that?
notes payable (net of disc $14,167,334)… $25,832,666
redeemable liabs – warrants ……………...… $17,000,000
deriv liabs - warrants………………………….. $ 2,130,091
tot long term liabilities ……………………….. $45,462,757
the point here is that the abax loans were discount loans,
there was no $40m disbursed to CHNG in 2008 by abax
as the liabilities section of the Prospectus defines. (clue
for rbt…. If you add the discount amount to the liability
amount, you get $40m) very revealing. you can check this
for yourself.... it's on page 37 or so of the prospectus.
that seems awfully funny, rbt, I could swear that CHNG, your company is chartered in Delaware, America. The PRC is a member to the WTO, are they not? Rules are rules. Just think how much discipline a Japanese firm could offer these backwards Chinese. It would be a value enhancement for all of us shareholders and the citizns of the PRC.
I think your quote was "so the vre goes to the highest bidder". The only assets that CHNG has are the respective so-called vre. If you would like I can give you a review from the prospectus posted for your review. You did read those of course.
If a Japanese company bids $100m for the vre ownership claims of the LNG plant, they take the plant, the Abax and Lake Street fund creditors take approx $64m, the BK Trustee takes fees of several million and the shareholders get the rest. Isn't that the way it works? The Japanese will insert some management discipline and the company will grow for them. Globalism at its best. The New World Order.
Shuwen Kang, current ceo, has taken the company dark. Latest financial information nearing one year old. They have, my opinion, feigned this chapter 7 in a joint attempt to steal the company at way way below fair value. The last information we have showed a company with subsidiaries that are each going concerns and some with promised (By Kang) margin improvements that add even more value to capital on successive basis than what was occurring. Then the company goes dark. What rights does a shareholder have? Trust the court system? Trust management of the company? Trust the devious rbtsherman?
Why would the company go dark? To hide bad financial information? Hardly, the company is in CH & liquidation. To save money on cpa reviewed statements in conformance with SEC requirements? Hardly they have been peeeeing red cash into attorney coffers for years now.
My point is simple, if Kang has joined the cabal intent upon screwing the American shareholder, as Fast-times Don Yang asserts, the whole stock market is a fraud, the SEC a joke, and the legal system nothing more than a harlot for the highest bidder.
states rbtsherman. However, we have exDirector, Fast-times Don Yang stating in his resignation letter that the current management will breach fiduciary responsibility by hiding assets that would otherwise be available. Read the resignation letter for yourself. Who will be bidding on what assets? Will the BK trustee have the foggiest of notions? Will American shareholders be "expletive-deleted" once again. Eventually someone will end up pregnant if this is repeated too often. On the way down and on the exit. And rbtsherman thinks this is the American business model at its best.
and if you are serious, there is a 41 page prospectus of China Natural Gas, Inc. located on the net.
" Prospectus - CHINA NATURAL GAS, INC. - 5/19/2006 - CHINA NATURAL GAS, INC. - 5-19-2006"
NEW YORK, Sept. 3 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that it has priced a public offering of 5,725,000 shares of its common stock, at $8.75 per share. The shares are being sold under the Company's previously filed shelf registration statement, which was declared effective by the Securities and Exchange Commission on August 20, 2009.
Net proceeds, after underwriting discounts and commissions and expenses, will be approximately $47,339,063. China Natural Gas has granted the underwriters an option to purchase up to an additional 858,750 shares to cover over-allotments, if any. The offering is subject to customary closing conditions and is expected to close on Wednesday, September 9, 2009.
The net proceeds from the offering will be used for the construction of the Company's liquefied natural gas (LNG) facility, the acquisition of eight CNG fueling stations, the purchase of eight CNG trucks to transport CNG and the establishment of a joint venture company with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd., as well as for general working capital purposes.
Roth Capital Partners, LLC is acting as the sole book runner for the offering. Simmons & Company International is acting as a co-manager for the offering.
terms of the indenture require arbitration in dispute of amounts due prior to court actions. Has this requirement of the note been met? (that was the question.. did you have an answer?)
a little early to start counting chickens when the sum certain claim has not yet been proved up, eh?
The Abax consortium appears to be a predatory lender, plundering a small rural , less sophisticated borrower trying its best to be like Adam Smith. Providing warmth to the chinese citizens in the winter, cutting pollution by providing environmentally friendlier fuels, and providing jobs to the proletariat. Karl Marx knew about devious capitalists like Don Yang and rbtsherman. But how can a Trustee in New York possibly know where all the assets are located, what their "going-concern" value is, and who is likely to provide American dollars for their purchase? Are current shareholders being "fleeced" by artful manipulators of the system and devious purveyors of false and misleading information?
They borrowed $40mil
They could always pay interest on the loan.
There is a significant return on investment.
You speak in terms of China, but who is this, the PRC? big difference.
In CH 7 class action suits get zero.
CHNG is not in just a bad part of China.
Suit one does not get $6 a share, they get nothing in a CH 7 liquidation.
How would an HVAC man in America know what CHNG assets were “worth nothing?” You do not know that the $10m in the city pipeline that was work in progress was “down the drain.”
"I believe as soon as chng was late in its payment they get the $7 for those shares"
what shares specifically? The ones they currently own? Or the ones they were to purchase with the exercise of the warrants? Is this a repeat performance of your booshidder mode rbt?
first of all "fast-times" Don is not a banker, he is the manager of a speculative hedge fund. Abax made no loan or loans, they purchased a loan that was an indenture drawn of by a subsid of a German bank. Are you clear about those particulars? second, the $7 warrant rights were a payment from the holder of the warrants, Abax, to be paid to CHNG (this was no guaranty of payment to ABAX.... you rbt, have it backwards) for each share of stock (of CNHG) that Abax chose to purchase. The warrants were not exercised, I believe they have expired, and what remains is the $17m for nonexercise of warrants. Sum total of all debt principal, interest, penalties and redemption rights on nonexercise of warrants is approx $65m or $3 per share of outstanding common stock. So... where is the guaranty $7 per share to the loan company? There is none.
where does this 'guarantee' of $7 per share exist? "this has been available sinde the loan for any body to now" you state. Where is it rbt? Br the way does Q-Ji still own his approx 15% of shares outstanding? If Abax gets $7 per share of common stock, why is it that the rest of us do not get $7 per share. Common shares are common shares? (there is a difference between loan principal and accrued interest... and even redemption rights of nonexercised warrants, but common shares are common shares with the same right and entitlement to each holder)
13D or 13G filed 6/6/13 affirms that creditor Abax Lotus Ltd owned 310,734 shares or 1.4% of outstanding shares. Those are common shares of the company. How would Abax Lotus Ltd be guaranteed $7 per share for that stock? It's current market value is $0.50 per share.