Asia Aluminum withdraws tender offer

Asia Aluminum has terminated its tender offer, which had been widely criticised and failed to gain support from the holders of the bonds and notes that it was seeking to buy back. The termination was confirmed in a brief statement by the company after Ferrier Hodgson announced that it had been appointed provisional liquidators of the Asia Aluminum group by the High Court in Hong Kong.

The immediate appointment of provisional liquidators was not that surprising since the Chinese aluminium producer had warned investors all along that their acceptance of the tender offer was basically the only way to keep the company out of bankruptcy. In the offer document, the company noted that its bank...