Latest news with #EdwardLau
Business Times
a day ago
- Business
- Business Times
New World bondholders want more disclosure on financing plans
NEW World Development bondholders are growing frustrated with the level of financial disclosure by the cash-strapped developer as it prioritises communication with banks during critical loan talks. The distressed Hong Kong builder has less than three weeks to complete an HK$87.5 billion (S$14.3 billion) loan refinancing deal before a covenant waiver expires at the end of the month. Debt advisers, meanwhile, have said that they think a liability management exercise on the bonds would be the only way for New World to preserve equity value, and are urging noteholders to band together to resist any such move. As this plays out, an information gap is creating transparency concerns for bondholders, hungry for any scraps of intelligence to make trading decisions. Unable to get answers A number of them said they haven't been able to get answers from New World in recent months on what steps it is planning to ease a liquidity crunch made worse by a market sell-off. On the other hand, some banks got to see a cash flow projection in April with details about the company's planned debt payments over the next three years, according to other people familiar with the matter. While such moves can irk bondholders, it isn't uncommon for distressed firms to prioritise communication with bank lenders. Banks often have better access to company financials through loan covenants or lending relationships, while unsecured bondholders typically rely on public filings or voluntary disclosures. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up New World bondholders have another pressing concern: Over the past three months, the company's perpetual bonds have lost an average of more than 40 per cent of their value, according to Bloomberg News calculations. The company's next steps could bring more pain for bondholders, according to debt adviser PJT Partners. During a recent call with bondholders, PJT said that it expects New World to pursue discounted exchanges as part of a potential liability management exercise. If such a development comes after the loan refinancing, it could cut recovery ratios to 30 per cent from 68 per cent for unsecured bond investors, PJT warned. Frustration among bondholders escalated after a recent decision by New World to delay some interest payments on perpetual notes. The move was a shock to holders, some of whom had been reassured in February, when chief financial officer Edward Lau said on an earnings call that net cash flow from operations was almost enough to cover capital expenditures, net interest expenses and perpetual bond coupon payments. Engaging with banks Many bondholders have run into dead ends when seeking information from the company, with messages to New World's investor relations manager getting no response, according to people familiar with the matter. Some have had to monitor the news closely to figure out what is going on with the company, they added. In contrast, New World has been actively engaged with more than 50 banks as it works to complete its refinancing deal. Bankers have been in close contact with the developer's finance team, receiving updates regarding the company's debt plans, other people said. New World didn't immediately respond to a request for comment. It said in a press briefing earlier this year that it has complied with all disclosure requirements. While unhappy they have been kept at arm's length, bondholders largely still hope the loan refinancing goes smoothly. The refinancing 'is progressing well and, once completed, should enhance New World's liquidity position and provide the company with additional time to execute its business turnaround,' said Dhiraj Bajaj, Singapore-based chief investment officer of Asia fixed income and equities at Lombard Odier Investment Managers. New World, whose key Hong Kong projects include Victoria Dockside and the new 11 Skies shopping mall, has about US$7.9 billion in outstanding bonds, according to Bloomberg-compiled data. While it doesn't have any US dollar notes maturing this year, it has two Hong Kong dollar-denominated bonds with a combined US$168.5 million due in March next year. The next big test for the developer comes Monday when it has a US$5.05 million coupon payment due on a 5.875 per cent bond. If the company decides not to pay the coupon on that day, it would have a 14-day grace period, after which an event of default would be triggered, according to bond documents seen by Bloomberg News. BLOOMBERG
Mint
2 days ago
- Business
- Mint
New World Bondholders Want More Disclosure on Financing Plans
(Bloomberg) -- New World Development Co. bondholders are growing frustrated with the level of financial disclosure by the cash-strapped developer as it prioritizes communication with banks during critical loan talks. The distressed Hong Kong builder has less than three weeks to complete an HK$87.5 billion ($11.2 billion) loan refinancing deal before a covenant waiver expires at the end of the month. Debt advisers, meanwhile, have said that they think a liability management exercise on the bonds would be the only way for New World to preserve equity value, and are urging noteholders to band together to resist any such move. As this plays out, an information gap is creating transparency concerns for bondholders, hungry for any scraps of intelligence to make trading decisions. A number of them, who asked not to be identified, said they haven't been able to get answers from New World in recent months on what steps it is planning to ease a liquidity crunch made worse by a market selloff. On the other hand, some banks got to see a cash flow projection in April with details about the company's planned debt payments over the next three years, according to other people familiar with the matter. While such moves can irk bondholders, it isn't uncommon for distressed firms to prioritize communication with bank lenders. Banks often have better access to company financials through loan covenants or lending relationships, while unsecured bondholders typically rely on public filings or voluntary disclosures. New World bondholders have another pressing concern: Over the past three months, the company's perpetual bonds have lost an average of more than 40% of their value, according to Bloomberg News calculations. The company's next steps could bring more pain for bondholders, according to debt adviser PJT Partners Inc. During a recent call with bondholders, PJT said that it expects New World to pursue discounted exchanges as part of a potential liability management exercise. If such a development comes after the loan refinancing, it could cut recovery ratios to 30% from 68% for unsecured bond investors, PJT warned. Frustration among bondholders escalated after a recent decision by New World to delay some interest payments on perpetual notes. The move was a shock to holders, some of whom had been reassured in February, when Chief Financial Officer Edward Lau said on an earnings call that net cash flow from operations was almost enough to cover capital expenditures, net interest expenses and perpetual bond coupon payments. Many bondholders have run into dead ends when seeking information from the company, with messages to New World's investor relations manager getting no response, according to people familiar with the matter. Some have had to monitor the news closely to figure out what is going on with the company, they added. In contrast, New World has been actively engaged with more than 50 banks as it works to complete its refinancing deal. Bankers have been in close contact with the developer's finance team, receiving updates regarding the company's debt plans, other people said. New World didn't immediately respond to a request for comment. The company said in a press briefing earlier this year that it has complied with all disclosure requirements. While unhappy they have been kept at arm's length, bondholders largely still hope the loan refinancing goes smoothly. The refinancing 'is progressing well and, once completed, should enhance New World's liquidity position and provide the company with additional time to execute its business turnaround,' said Dhiraj Bajaj, Singapore-based chief investment officer of Asia fixed income and equities at Lombard Odier Investment Managers. New World, whose key Hong Kong projects include Victoria Dockside and the new 11 Skies shopping mall, has about $7.9 billion in outstanding bonds, according to Bloomberg-compiled data. While it doesn't have any US dollar notes maturing this year, it has two Hong Kong dollar-denominated bonds with a combined $168.5 million due in March next year. The next big test for the developer comes Monday when it has a $5.05 million coupon payment due on a 5.875% bond. If the company decides not to pay the coupon on that day, it would have a 14 day grace period, after which an event of default would be triggered, according to bond documents seen by Bloomberg News. More stories like this are available on
CBS News
17-05-2025
- Business
- CBS News
San Francisco small businesses struggle to navigate 90-day tariff pause
SAN FRANCISCO — This week's announcement of a 90-day tariff pause has San Francisco small businesses in flux. Some are seeing some immediate shifts, while others are trying to figure out what to do next. In the wake of Trump's stop-and-go tariff policies, business owners like Edward Lau are confused about what and when to order from Chinese importers as inventory levels dwindle. "You don't know what to do, honestly. You don't know whether this 90-day (pause) is temporary," he said. Customers continuously ask the herbal medicine store operator when prices will stabilize. He readily admits that's above his pay grade. Since March, Lau has raised prices while absorbing other costs to remain competitive with similar stores in San Francisco's Chinatown. "I would say 10-20% at least for some of the products. But for most of the others, we still are at a price that we paid for before the tariff," said Lau. Lau remains anxious, even though tariffs are significantly lower than the previous 145% hike. A decision to purchase too little now could hurt his bottom line if tariffs ramp up again later this year. "Once you sell out, you stock up. The price we are getting is much higher than what we are (currently) selling for," said Lau. Further up the supply chain from Lau, operators of bonded warehouses, where imported goods can be stored without paying duties until they are removed, have seen immediate changes since the tariff pause. Francisco Garcia, the founder of Lynx Logistics, says requests to remove goods have started. Container-tracking software provider Vizion also says U.S. container bookings from China surged nearly 300%, soon after the announcement. But Garcia says many of the larger companies he works with are still asking for long-term bonded storage. "The big players, the big forwarders, the big direct shippers, are actually asking for more space because these next 90 days are very uncertain," said Garcia. Uncertainty for a small player in the supply chain like Lau keeps him twisting in the wind, as he sees the hardship it has created every day. "I see some of the customers getting so frustrated, saying 'I can't afford it,' " said Lau. Even his son has asked whether running a small store is worth it. "He's told me I don't see any future in the United States, even though he was born here. It makes me even more nervous now," said Lau. What is certain is the anxiety Lau is dealing with at the bottom of the supply chain, in the midst of a global trade war. The U.S. lowered its tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%. The agreement is set for 90 days, during which both nations will engage in further trade discussions.
Yahoo
30-03-2025
- Business
- Yahoo
San Fran's Chinatown shops struggle to survive as tariffs drive up costs
The heart of San Francisco's Chinatown is under siege — not by bulldozers or policy bans, but by something just as destructive: rising tariffs. The neighbourhood's small shops are feeling the pinch from U.S. tariffs on China, which are now at 20%. The owners have weathered economic downturns for generations, shifting demographics, and even the pandemic. These businesses operate on small margins, face tight competition, and serve a largely elderly clientele living on fixed incomes. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP Edward Lau, who owns a shop selling China-imported herbal products and supplements for pain relief, is among the business owners worried about the impact. Raising prices to offset higher costs could drive customers away, gravely impacting their livelihoods. However, absorbing these increased costs indefinitely isn't sustainable. "It's becoming more expensive so people will start thinking of alternatives or simply won't use it … They'll be hit really hard," Lau told CBS News. "The uncertainty makes it really hard to do business." Although over 90% of North American manufacturers moved at least some of their production out of China between 2018 and 2023, small mom-and-pop businesses like Lau's will continue to struggle under current conditions. Tariffs are directly increasing the cost of imported goods — such as merchandise, food items and supplies — that small businesses rely on, both in San Francisco's Chinatown and across the country. Beyond higher costs, supply chain disruptions caused by tariffs can make some imports scarce or only available at steep prices. As a result, owners struggle with strained cash flow and lower profit margins. Without financial reserves or a buffer, many have no choice but to raise prices or adjust their pricing strategies. The longer these challenges persist, the greater the impact on customers. Many may turn to larger competitors, which benefit from economies of scale and can keep prices down. Read more: Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus 2 ways to build that first-class portfolio If rising costs are affecting your go-to products, it can sting. The good news? There are ways to cope with the shift while also supporting small businesses. Buy locally sourced alternatives and make direct purchases from small businesses. This eliminates intermediaries, helping to keep costs down. Compare prices and hunt for discounts. Taking time to comparison shop, use coupons and plan around sales can make a difference. Consider generic brands or bulk purchases when they offer better value. Use a cash-back credit card. Many credit cards offer rewards based on spending categories. If you can pay your balance in full each month to avoid interest, you can turn everyday spending into extra savings. Consider vintage, refurbished or like-new its. Gently used or vintage goods are often more affordable. Many retailers also sell certified refurbished electronics and furniture at a fraction of the price of new ones. Just check for warranties and authentication where needed. Adjust your budget and lifestyle. Small tweaks — like dining out less, finding free or low-cost entertainment or hosting friends at home — can help absorb rising costs on essential purchases. By making strategic choices, you can ease the financial strain while helping small businesses stay afloat. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
South China Morning Post
20-03-2025
- South China Morning Post
Pet-friendly rides: Hong Kong MTR Corp notes smell, health issues concerns
Hong Kong's MTR Corporation has noted concerns that allowing pet animals onto trains could result in odour and health problems, animal concern group representatives said. Lawmaker Edward Lau Kwok-fan and representatives of 70 groups attended the meeting with the rail giant on Monday. They confirmed they suggested limiting pet sizes to 20kg and designating train compartments as solutions. Hong Kong's MTR Corp, KMB explore pet-friendly policies The meeting was held after the rail operator and franchised bus firm KMB said last week that they were considering allowing passengers to bring small animals on transport. Owners hailed the review as a significant step in making Hong Kong more pet-friendly. 'I'm very excited about bringing my dog to all the places that I want to bring him,' a pet owner named Timmy said. He said he would only need to pay HK$20 (US$2.56) for the MTR ride rather than a HK$250 taxi fare to bring his mameshiba inu Luca to see his mother in Yuen Long. North district Council member Corey Lau Chun-hoi, who joined Monday's meeting, said the MTR Corp was told about possible concerns pet owners might have, including odour issues. More animal-friendly services are being considered after the success of KMB's pet-friendly bus service, the first of its kind in Hong Kong. Photo: Lo Hoi-ying Other concerns the groups suggested included how the presence of pets both on trains and in stations might affect passengers who were afraid of or allergic to them, Lau said. 'We recommended the MTR do more frequent cleaning and for better ventilation and air-conditioning systems, especially for pet-friendly cars,' he said, adding the rail company noted the concerns and recommendations. Lawmaker Edward Lau suggested pets be put in carriers and weigh no more than 20kg, in line with the law that animals above that size are classified as 'large dogs'. These dogs are subject to additional regulations, including mandatory leashing in public areas. Corey Lau said he hoped the MTR Corp would also allow dogs larger than 20kg in the future. Edward Lau said the rail operator could also impose a surcharge on passengers who brought along pets, with monthly passes as a possible option. The initial implementation could be restricted to non-peak hours and in one or two designated pet-friendly carriages per train. Hong Kong's first pet-friendly bus is a tail-wagging success Unlike many places worldwide, pets in Hong Kong are barred from most public transport, such as trains, buses and trams, unless they are guide dogs. Many owners rely on Uber Pet, which adds HK$20 per animal to the fare, or take taxis. Taxi drivers only charge HK$5 per pet, but they can refuse to take the hire. Some pet owners expressed confidence that concerns about allowing animals onto public transport could be managed. Queenie Wong, 33, said most owners clean up after their pets and manage aggressive dogs by using a muzzle. 'As long as dog owners are responsible – and I think most dog owners are – it shouldn't be a concern,' the owner of a seven-year-old beagle said. Dr Matthew Murdoch, director and veterinary consultant at pet travel agency Ferndale Kennels, said keeping pets in designated compartments could solve the concerns of those with dog phobias or allergies. 'A lot of people see their pets as family, and it makes sense for them to be able to travel together,' Murdoch said. 'There will be some small challenges, but it's a real first step in making Hong Kong appealing for pets.' On Japan's shinkansen bullet trains, dogs usually have to travel in a carrier. Photo: AFP In Japan, trains and buses generally allow small pets in carriers with certain restrictions. New York's subway permits animals in carriers, though some passengers have stretched the rules by carrying large dogs in backpacks or modified oversized shopping bags. Britain and Sweden allow leashed dogs on trains and buses. In Germany and Italy, large-leashed dogs require an additional ticket on trains, while smaller dogs and other pets in carriers travel for free. The MTR Corp said it was committed to providing safe, reliable and comfortable railway services when asked about the meeting details and whether it had concerns about smell and health issues if pets were allowed on trains. 'It is necessary to consider and balance various factors. The company will continue to communicate with different stakeholders,' a spokesman said in a reply to the South China Morning Post.
