Bring bacon home: the Chinese company pays investors to PORK after they run out of money

Bring bacon home: the Chinese company pays investors to PORK after they run out of money

City & Finance Reporter for the Daily Mail

Investors of Chuying Agro-Pastoral Group have agreed to take parcels of hams or pork instead of interest payments

Investors of Chuying Agro-Pastoral Group have agreed to take parcels of hams or pork instead of interest payments

Investors of Chuying Agro-Pastoral Group have agreed to take parcels of hams or pork instead of interest payments

Investors in a Chinese company are covered with meat after the company has run out of money to repay them.

Lenders with a £ 30 million debt in Chuying Agro-Pastoral Group have agreed to take packages of hams or pork instead of interest payments.

The odd approach comes after the swine company failed to repay £ 55 million of bonds due this week, saying its cash flow was successful among African swine fever epidemics.

The rest of the outstanding debt would be repaid in cash, Chuying said, even if these payments were postponed.

Analysts reacted with raised eyebrows, but Chuying's shares reached 20.9% from the start of the year.

Perhaps the investors were impressed by the quality of the meat – the gift packages sold for almost £ 1,000.

However, Judy Kwok-Cheung, director of fixed income research at the Bank of Singapore, said: "Generally, cash payment is not considered acceptable for debt repayment".

Chuying will not be the first company to repay the securities with its goods.

In 2010, Hotel Chocolat launched a Chocolate Bond.

Customers who have invested £ 2,000 have received six boxes of chocolate each year, each worth £ 18.95, until the start of this year, when the initial amounts have been redeemed in cash.

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