Bringing home bacon: Chinese firm pays investors in PORK after running out of money
City & Finance Reporter for the Daily Mail
Chuying Agro-Pastoral Group investors have agreed to take or not charge packages instead of interest payments
Investors in a Chinese company are being showered with meat after the business ran out of money to repay them.
Lenders who hold £ 30million worth of debt in Chuying Agro-Pastoral Group have agreed to take or miss gift packages instead of interest payments.
The odd method comes after the pork-producing company failed to repay £ 55million worth of bonds due this week, saying its cash flow had taken a hit amid outbreaks of African swine fever.
The rest of the outstanding debt would be paid back in money, Chuying said, though these payments would have been postponed.
Analysts with raised eyebrows, but Chuying's shares have rocketed 20.9 per cent since the announcement.
Perhaps they were impressed with the quality of the meat.
However, Judy Kwok-Cheung, director of fixed income research at the Bank of Singapore, said: 'Payment in kind is generally not acceptable for debt repayment.'
Chuying does not want to be the first company to repay bonds with its wares.
In 2010, Hotel Chocolat launches a Chocolate Bond.
Customers who bought £ 2.95 each year, each worth £ 18.95, before earlier this year were repaid in cash.