Asia Aluminum has announced plans to launch a tender offer for all its outstanding international bonds as part of a restructuring that it says is needed to pull it out of a situation of deteriorating earnings and cash flow, rising costs and an increasing debt burden.
The Chinese aluminium producer has run into difficulties partly because of the deep downturn in the aluminium extrusion industry which has seen sharp falls in demand and selling prices, as well as the decline in global economic conditions and the tightening of credit. There has also been a delay in the commissioning of its new flat-rolled products manufacturing facility and thus in the revenue flow that it was meant...
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