28-03-2016, 06:39 PM
Not pointing out your minor error per se but pointing out that I'm reading ernestly 
The original principle of SB1 is RMB12,075,000+40,500,000= RMB52,575,000 and SB2 is RMB20,125,000+67,500,000= RMB87,625,000
If we use 25% interest for the total amount for 60 days interest, it is roughly RMB5.75m. If we use 25%/10% for the 60 days interest it is RMB3.59m. I'm using the computation based on the original principal rather than the outstanding principal+interest. In future the computation will be based on the new principal.
The issue is of course not so simple as restructuring is a give-and-take process. Fact that SB2 is 10% interest is good sign but that also takes into account it has been converted to a straight bond and revised principal amount.
Fact is also the auditors overestimated the liability since they don't seemed to be aware of the impending restructuring even to the last minute.

The original principle of SB1 is RMB12,075,000+40,500,000= RMB52,575,000 and SB2 is RMB20,125,000+67,500,000= RMB87,625,000
If we use 25% interest for the total amount for 60 days interest, it is roughly RMB5.75m. If we use 25%/10% for the 60 days interest it is RMB3.59m. I'm using the computation based on the original principal rather than the outstanding principal+interest. In future the computation will be based on the new principal.
The issue is of course not so simple as restructuring is a give-and-take process. Fact that SB2 is 10% interest is good sign but that also takes into account it has been converted to a straight bond and revised principal amount.
Fact is also the auditors overestimated the liability since they don't seemed to be aware of the impending restructuring even to the last minute.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
Think Asset-Business-Structure (ABS)