SHANGHAI (Reuters) - A Chinese livestock company squeezed for cash has proposed to bondholders a plan to pay them some of the interest owed with ham and gift boxes of meat, according to an exchange filing, sending its stock soaring.
Chuying Agro-Pastoral Group Co Ltd (002477.SZ), which earlier in the week defaulted on a bond, said late on Thursday it was making the adjustment because cash flow was tight amid outbreaks of highly contagious African swine fever.
Since detecting a first case in early August, over 50 more have been reported in more than a dozen provinces and municipalities.
On Friday, shares in Shenzhen-listed Chuying Agro-Pastoral rose nearly 10 percent following its novel offer to repay.
The company said it was negotiating with creditors about the ham-for-interest plan, which would cover 271 million yuan ($39 million) owed in principal and interest.
It has proposed that the principal would be mostly repaid with money, but payments would be postponed.
Reporting by John Ruwitch; Editing by Simon Cameron-Moore