China Milk Products Group Limited (In Provisional Liquidation) ("Company")
(Incorporated in Cayman Islands)
Meeting of Bondholders on 8 February 2012 and the Proposed Settlement Arrangement
The Joint Provisional Liquidators of the Company ("Provisional Liquidators") refer to the Company's announcement dated 31 August 2011 ("Announcement") in relation to their appointment to the Company pursuant to an Order made by the Grand Court of the Cayman Islands on 22 July 2011.
As set out in the Announcement, the powers of the Provisional Liquidators include, amongst other things, to enter into discussions and negotiations for and on behalf of the Company, for the purpose of, but not limited to, the restructuring of the Company's business and operations and restructuring or rescheduling the Company's indebtedness.
A meeting of the holders of those of the US$150,000,000 Zero Coupon Convertible Bonds due 2012 of the Company ("Bondholders" and "Bonds") to consider a proposed full and final settlement arrangement between the Bondholders and the Company in respect of the Bonds ("Settlement Arrangement") was convened and held on 8 February 2012 ("Bondholders Meeting"). At the Bondholders Meeting, a resolution in respect of the proposed Settlement Arrangement was unanimously passed in accordance with the Trust Deed dated 5 January
2007 constituting the Bonds.
The proposed Settlement Arrangement involves payment of a total US$53 million ("Settlement Amount") to settle and compromise the outstanding Bonds. The Settlement Arrangement remains conditional until conditions precedent to the Settlement Arrangement are satisfied, including, inter alia, payment of the Settlement Amount in full. All the outstanding Bonds will be deemed cancelled upon completion of the Settlement Arrangement.
Appropriate announcements will be made as and when there are further developments.
Cosimo Borrelli
Joint Provisional Liquidator
23 April 2012

J253/851376

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