CFC China Food Co.

TIDMCFC

RNS Number : 2647W

China Food Company PLC

06 November 2014

 
   Press Release     5 November 2014 
 

China Food Company Plc

("China Food", the "Group" or the "Company")

Loan Note Expiry

China Food Company Plc (AIM: CFC), a leading Chinese manufacturer of cooking and dipping sauces, today announces that it has not redeemed the GBP5.7m of Convertible Loan Notes of GBP1,000 each ("Loan Notes") which were due for redemption on 3 November 2014.

The Company is in contact with a number of Loan Note holders and as previously notified intends to redeem the Loan Notes from the proceeds arising from the sale of either its operating businesses. Without a sale of the operating businesses the Company does not have sufficient funds to redeem the Loan Notes.

As announced on 24 October 2014, the proposed sale of the Company's animal feed and condiments businesses continues. The intended sale of the animal feed business has progressed and the Company has received a credible proposal from management to acquire the animal feed business for net asset value, however completion of any transaction is unable to occur until the condiments business disposal is completed (as the land on which the animal feed business operates is collateralised as part of the overall bank facility with the condiments business). The discussions on the sale of the condiments business continue with a number of parties, one of whom, is undertaking due diligence. No offer has been received at this stage and there is no certainty that any offer will be received for the condiments business.

As announced on 11 July 2014, the Loan Notes have technically been in default following suspension of the Company's shares from trading on AIM on 25 June 2014. Details of the terms of the Loan Notes were announced on 6 September 2013.

A further update will be provided in due course.

- Ends -

For further information:

 
 China Food Company Plc 
 John McLean, Chairman       Tel: +44 (0) 7768 031 
                                               454 
                          www.chinafoodcompany.com 
 
 
 finnCap 
 Geoff Nash / Ben Thompson (Corporate   Tel: +44 (0) 20 
  Finance)                                    7220 0500 
 
 Numis Securities 
 David Poutney (Broker)                 Tel: +44 (0) 20 
                                              7260 1000 
 

Media enquiries:

 
 Abchurch Communications 
 Henry Harrison-Topham / Canace          Tel: +44 (0) 20 
  Wong                                         7398 7714 
 canace.wong@abchurch-group.com   www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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