SHENYANG, CHINA— Huayang International Holdings, Inc. has approved the sale and transfer of all of its interest in Sheraton Shenyang Lido Hotel to a related company to settle debt obligations owed to the related company. The transaction is subject to a number of closing conditions. Greater China Appraisal Limited, an appraisal firm headquartered in Hong Kong, served as an independent appraiser for the transaction. “This is a positive move for HIHI, as it will significantly improve the companys bottom line,” said Gao Wanjun, chairman/CEO of Huayang International Holdings, Inc., which is organized in Nevada, as a real estate development company. “The transaction will also reduce our debt obligations by more than $13 million.” The company incurred $1.7 million, or $0.23 per share, in losses in fiscal year 2001 from its investment in the hotel. For the six months ended June 30, it incurred $821,778, or $0.11 per share, in losses from its investment. The company also settled other bank loans totaling $6.7 million with some of its non-leased real estate properties. So far this year, the company has settled about $14 million of its $17.3 million bank loans, and is currently negotiating with the lending banks to extend the remaining $3.3 million with new terms. Interest expenses are slashed by more than $1 million a year from the reduction of its bank loans.
