China: Chinese hops supplier paves way for asset reorganization

Xinjiang Hops Co. Ltd., one of China's biggest hops and barley suppliers, has reached a compromise on debts with its 13 creditors in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, paving the way for the company's reorganization of assets, Asia Puls communicated on December 15.

The debts of Xinjiang Hops were reduced from more than 2 billion yuan (US$247.7 million) to 500 million yuan, according to the company's agreements signed here Tuesday with creditors, including asset management companies like Huarong, Changcheng, and Dongfang, and the Agricultural Bank of China.

"The signing of agreements with our creditors marks a big step for the future successful regrouping of this financially troubled company, and ensures the investment of our new shareholders' high-quality assets and cash," said Zhou Yingjian, director and general manager of Xinjiang Hops.

The Shanghai-listed company ran into trouble in 2003 when its founder, Aikelamu Aishayoufu, disappeared, leaving behind about 1 billion yuan in previously unknown loan guarantees and other financial liabilities.

The company's total debts include 1.6 billion yuan in bank loans and 470 million yuan from other financial institutions.

Xinjiang Bluesword Brewing Investment Co., a joint venture between Sichuan Bluesword Group and Danish brewer Carlsberg Breweries A/S, has bought 46.09 per cent of the shares of Xinjiang Hops, becoming the biggest shareholder of the company.

The joint venture is expected to put assets and cash totaling 370 million yuan into the Xinjiang Hops for reorganization at the end of the year.