SHENYANG, China, Aug. 6, 2007 (PRIME NEWSWIRE) -- Great China International Holdings, Inc. (OTCBB:GCIH) today announced that the company has repurchased and effectively retired an overdue debt obligation totaling $24.6 million USD.
The original loan for Great China -- from Industry and Commercial Bank of China (ICBC) in the principal amount of $22.8 million USD -- was obtained for development of the company's Chenglong Garden property in 2001. On July 23, 2007, Shenyang Huahai International Investment Co., Ltd., a company unrelated to Great China, bought the loan from ICBC on auction, which included $1.8 million USD in loan interest. On July 30, 2007, Great China entered into an agreement with Shenyang Huahai International to acquire and effectively settle the current liability short-term loan for a total payment of $7.5 million USD (approximately 56,860,000 RMB).
Great China paid a deposit to Shenyang Huahai International of 5.0 million RMB (approximately $0.7 million USD), with the balance of the purchase due on August 29, 2007.
"Paying down this debt will further strengthen our financial position and enable us to continue delivering value to our shareholders," said Fang (Frank) Jiang, chief executive officer. "We took advantage of a disposition related to our Xita development and recent bank borrowing to fund this purchase. The retirement of this debt should enable us to move ahead in our growth plans and to acquire more strategic properties for development around Shenyang."
About Great China International Holdings
Founded in 1989, Great China International Holdings' wholly owned subsidiary, Shenyang Maryland International Industry Co., Ltd., is the largest non-state-owned real estate developers in Northeast China. The company's core business is premium residential and commercial development and management. It currently owns and manages the President Building, which was completed in April 2002, with 25 tenants comprised of Fortune 500 companies, including General Electric (China) Co., Ltd., Johnson & Johnson, Kodak and Philip Morris. The company's prior developments included the Maryland Building, Roma Resort Garden, Qiyun New Village, Peacock Garden, University Campus of Shenyang Teacher's University, and Chenglong Garden, mostly located in Shenyang.