China Aviation Oil (Singapore) recently released its new debt restructuring scheme. The most noteworthy of the plan should be the increase of debt repayment ratio from 41.5 percent to 54 percent. At the same time first payment in cash was increased and moratorium period was reduced.

Judging from the new plan first cash payment to creditors increased from the original $100 million to $130 million. Deferred debts increased from $120 million to $145 million. Compared with the $510 million total debts overall repayment rate reached 54 percent and was more than 10 percent higher than the original 41.5 percent.

At the same time the creditors would get compensation for deferral in the next five years instead of eight years after the first payment. The CAO has decided to sell 5 percent shares of the Spanish CLH. Meanwhile the Group company also promised to provide guarantee for the payment of deferred debts and help it re-financing.

In the detailed rules the CAO also offers creditors two options between cash buyout and first cash payment plus moratorium.

By People's Daily Online