China Pacific Inc. Reports on Notes Interest and Disposition of Properties.LONG BEACH, Calif.--(BUSINESS WIRE)--Jan. 19, 1999--China Pacific Inc. (Nasdaq SmallCap:CHNA CHNA Community Health Network Area CHNA Community Health Needs Assessment CHNA Canadian Holistic Nurses Association CHNA College Hill Neighborhood Association CHNA Castleberry Hill Neighborhood Association CHNA Converium Holdings North America ) (the company) Tuesday Tuesday: see week. reported that the company is unable to make the Jan. 15, 1999, interest payment due on the approximately $15 million of the company's outstanding 9 percent convertible notes (the notes), and that on Dec. 31, 1998, it sold its two income residential properties in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. . Pursuant to the terms of the notes, on Jan. 15 the company was to make an interest payment of approximately $675,000 to the holders of the notes. The company was unable to make this interest payment and the holders of the notes have advised the company that the maturity date of the notes will not be extended and that the holders of the notes intend to take legal action to enforce their rights under the notes. In addition, the company has sold its two residential properties located in Hong Kong for a total consideration of $3.55 million. The company decided to sell the Hong Kong residential properties in order to decrease the company's mortgage loan liabilities and corresponding interest expenses. As a result of the sale of the Hong Kong residential properties, the company's $5.13 million mortgage loan liabilities have been repaid and replaced by two promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. for the total amount of $1.58 million as described below. Because the proceeds from the sale of the Hong Kong residential properties were insufficient to pay the bank loans on the properties, the company's subsidiaries through which the properties were held have issued two promissory notes for a total principal amount of $1.58 million, each with a term of three years and bearing interest at the rate of 5 percent per annum Per annum Yearly. , payable upon maturity of the promissory notes. Payment of principal and interest on promissory notes is guaranteed by the company. Also, effective as of Dec. 22, 1998, Albert Choi resigned from his position as secretary of the company. Xin-Chuan Huang, currently a director of the company, has been appointed as new secretary of the company, effective immediately. China Pacific Inc. is a producer of iron and steel products in Sichuan Province, The People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China, through its majority interest in Chengdu Chengkang Iron and Steel Co., Ltd. Additional corporate information is available at the company's Web site -- www.chinapacific.com, or contact the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. office at 562/433-1882. The information in this news release includes certain "forward-looking" statements within the meaning of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the federal securities law. Although the company believes that the expectations reflected in its forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, the company's limited operating history, the uncertainty of the market, the impact of competitive products and pricing, and general economic and political risks. |
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