Sinopec Zhenhai Refining in talks with BP Amoco on bond redemption/conversion

HONG KONG (AFX-ASIA) - Sinopec Zhenhai Refining & Chemical Co Ltd deputy chief accountant Zhu Zengqing said the company is in talks with BP Amoco Plc on whether or not the latter will redeem or convert issued bonds it holds in Zhenhai Refining.	    "The bonds, worth 155 mln usd, will mature in mid-December. BP Amoco is the largest holder and owns about 120 mln usd. We are negotiating whether BP Amoco will redeem the bonds or change them into our shares," Zhu said.	    Zhu said if BP Amoco and other bond holders decide on redemption, Zhenhai Refining will pay about 191 mln usd in principle and interest for the entire 155 mln usd bonds.	    "We see no problem in taking on the complete redemption. Zhenhai Refining is sitting on 100 mln usd in cash and banks have agreed to lend 90 mln usd for the redemption," Zhu said.	    As of the end of 2000, the gearing ratio of Zhenhai Refining stood at 35.75 pct, compared with 34.89 pct a year earlier. 	    Zhu said if the bonds are completely redeemed, the gearing ratio will be reduced to 31 pct, adding that the level will be further reduced to 23 pct if the bonds are completely converted.	    At the end of 2000, Zhenhai Refining's net asset value per share was 2.95 yuan, compared with 2.83 a year earlier, the company said. 

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