STOCK ALERT - Singapore-listed CAO rises on possible capital restructuring
13 June 2007
AFX Asia
(c) 2007, AFX Asia. All rights reserved.
SINGAPORE (XFN-ASIA) - China Aviation Oil (Singapore) Corp (CAO) shares
were sharply higher on market speculation that the company may announce
a capital restructuring plan tomorrow.
CAO was up 0.16 sgd or 8.25 pct at 2.10 on volume of 7.06 mln shares.
"Previously they had sold Compania Logistica de Hidrocarburos SA and
used the 73.3 mln usd proceeds to offset the current existing debt. They
could be coming up with some capital restructuring to reduce debt," said
a dealer with the local brokerage.
CAO last month said it had fully repaid its outstanding debts of 73.3
mln usd using proceeds from the sale of its stake in the logistics
company.
That completed the restructuring of its outstanding loans entered into
with creditors after the company nearly collapsed in 2004 with debts of
550 mln usd incurred from speculative trading in oil derivatives.
