Forterra Trust (formerly: Treasury China Trust)

[GreedandFear]

On 14 March 2011, Forterra issued a convertible bond (“Forum CB”) with a principal amount of S$59.7 million to finance the Group’s acquisition of Huai Hai Mall and Central Park Mall.

On 31 January 2013, the bondholder completed the transfer of three principal amounts of S$10.0 million each to three different transferees while retaining the principal balance of S$29.7 million.

1. Forum gave Forterra the investment $$ only in Jan 2013, more than a year after the bond was issued.
2. Only $30m out of the $59.7m was transferred to Forterra. Is Forum still retaining the $29.7m presently?
3. Before they gave the $30m, there was a concern where Forum would require Forterra to redeem the bond. Had that happened, does it mean Forterra had to pay interest on money which had never been borrowed?

I'm totally confused.

The entire convertible bond was issued to Forum in 2011. In 2013, Forum on-sold $30mm (in three lots of $10mm) to other investors.