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Great China Announces Debt Retirement
Aug.06, 2007
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.
CONTACT: Great China International Holdings, Inc.
Nancy Gu
(86) 24-22813888, ext. 885
nancygu@gcih.cn
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