Last checked at 14 Oct 2011 14:26
14 October 2011
Craven House Capital Plc
(the "Company")
Repayment of Shenzhen Cadro Loan
The Company today announces that Shenzhen Cadro (Catic Group) Hydraulics Equipment Co. ("Shenzhen") has paid back the US$100,000 convertible loan (plus interest of 6%) provided to it by the Company (as announced on the 27th October 2010).
In recent months there have been significant and widely publicised reductions in the valuations of small and mid-sized Chinese companies listed on global stock markets. Against this background, and in liaison with the Company, Shenzhen has agreed to repay the loan until market conditions for their indented IPO are more favourable.
The Company continues to have a close working relationship with Shenzhen's management and looks forward to the prospect of working together again in the future.
The Company's Chairman, Mark Pajak, commented; "Whilst the recent turmoil in the public markets has hampered the efforts of companies like Shenzhen from executing planned IPO's this has not impacted on the fundamental quality of their underlying operations or their growth prospects. The accounting irregularities identified in a small number of publically listed Chinese companies has resulted in widespread loss of confidence and dramatic reductions in valuations of all small and mid-cap Chinese companies. This situation has provided Craven House Capital with a number of attractive opportunities, as a large number of very well run companies are now suffering historically low valuations. This is a situation we intend to capitalise on as we seek to close out investment opportunities in China over the coming months"
The Company intends to repay $106,000 to Desmond Holdings Ltd, which provided a loan facility as announced on 13 October 2010.
For further information please contact:
Craven House Capital Plc | Alexandra Eavis
| 020 7002 1491 |
Daniel Stewart & Company (Nominated Adviser and Broker) | Antony Legge / James Thomas | 020 7776 6550 |
www.cravenhousecapital.com