Nine Dragons buys back 57% of its bonds

Nine Dragons Paper has announced that more than half of its outstanding 7.875% senior bonds due 2013 were tendered by investors during the early part of a buyback offer that will remain open until March 9. It has also scrapped plans to reduce the offer price by 5 cents per dollar for bondholders that failed to tender their bonds before an early deadline on February 23, saying bondholders can now receive the full offer price of 53 cents on the dollar throughout the remaining tender period.

The acceptance level shows that investors are welcoming the opportunity to exit illiquid assets and cut their losses, even if it means taking quite a substantial haircut and even...