Market Leaks: CHC Shadow Banking

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An honorable member of the Coffee Shop Has Just Posted the Following:

Ongoing trials with CHC have affected CHC's ability to obtain fresh loans from banks.

A local listed company has emerged as the proxy for CHC and launched a massive bond issue, in which funds raised were channelled to CHC at a similar interest rate (slightly priced higher to include underwriter's placement fees). The leadership of the listed company is a faithful believer of the church.

The underwriter's staff has discovered the deal and confronted the listed company but received no satisfactory reply. The company's independent directors and auditors are rumored to be in the dark to avoid alarming sgx at this stage.


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