Boyuan Provides Update on Indenture Default Due to Late Annual Filing
TORONTO, Nov. 14, 2012 /CNW/ - Boyuan Construction Group, Inc., TSX: BOY, BOY.DB, BOY.DB.A), a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that further to its press release of October 4, 2012, as a consequence of the delay in filing its audited annual financial statements for the fiscal year ended June 30, 2012 and related Management's Discussion & Analysis, Annual Information Form and CEO and CFO certification of filings (collectively, the "Annual Filings"), the Company has received from the trustee a notice dated November 8 under its trust indenture dated February 27, 2009 with respect to the 11.75% secured convertible debentures due February 28, 2013 (the "2009 Indenture") and a notice dated November 8, 2012 under its trust indenture dated November 3, 2010 with respect to the 10% unsecured subordinated convertible debentures due October 31, 2015 (the "2010 Indenture").
The trustee has stated in the notices that in the event the default is not cured within 30 days of the respective dates of the notices, the trustee will be required to send a notice of default to the debenture holders under the 2009 Indenture and the 2010 Indenture. The trustee's notice of default will trigger the right of the debenture holders to demand accelerated repayment of the debentures in accordance with the terms of the 2009 indenture and the 2010 Indenture, respectively. The Company is working diligently with its auditors to resolve any outstanding issues relating to the Annual Filings.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2011, Boyuan completed more than 80 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information visit www.boyuangroup.com.
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or the Company's future performance and which is inherently uncertain. All information other than statements of historical fact may be forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking information contained in this press release includes, but is not limited to, management's expectation to make the Annual Filings and consequences of failure to remedy the default under the 2009 Indenture and the 2010 Indenture during the cure periods. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: risk of the Company being unable to make the Annual Filings within the cure periods, risk of the repayment of the debentures being accelerated, risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in China and other risks included in the Company's AIF for the fiscal year ended June 30, 2011 and in the Company's public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as otherwise required by law.
SOURCE: Boyuan Construction Group, Inc.For further information:
Boyuan Construction Group, Inc.
Mr. Paul Law, CFO
+(852) 9329 5088
(416) 815 0700 ext. 253