Anhui Zhongding: The Crisis of Triggering the Put Provisions
Product Number：
EN_2020KJYGSCW_1979
Page Views：
738
CaseName：
Anhui Zhongding: The Crisis of Triggering the Put Provisions
Authors：
Zhi Xiaoqiang,Deng Lu,Hua Sha
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Zhongding Group
Industry：
Manufacturing
Discipline：
Accounting & Corporate Finance
Scale：
Large
Language：
English
Type of Case：
Descriptive Case
KeyWords：
Anhui Zhongding; Convertible Bonds; Put Provisions
Abstract：
Anhui Zhongding Sealing Parts Co., Ltd. (Stock Symbol: 000887, hereunder referred as “the Company” or “Anhui Zhongding”), located in Anhui province, needed money to update the company production line to enlarge production capacity to capture a larger share of the high-end seal market after the company had succeeded in the company backdoor listing. The company issued convertible bonds in February, 2011, but in that year, the company was in danger of triggering the put provisions. Although successfully navigating the company through that crisis in the nick of time, they continued with struggling to avoid triggering the put provisions. This case describes the process of issuing convertible bonds for financing, the problems that can arise from the issue, and how other companies can best learn from the difficulties encountered by Anhui Zhongding.
Intended Audience：
Undergraduate,Graduate,MBA,EMBA
Data Source：
Primary
Publication Date：
2013
Revision Date：
2020
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