New World jumps on easing cash crunch pressure after expanding loan facility

By Reuters News

** Shares of New World Development 0017.HK jump 10.7% to HK$6.7, their highest level since September 7

** Stock last up 4.7%, on track for the biggest one-day pct gain since August 12 in the third straight rising session

** The property developer said on Wednesday its cash crunch had eased further after expanding a loan facility by around HK$1 billion ($127.5 million) and terminating operating rights for a shopping mall next to the Hong Kong airport

** New World said its loan facility with Deutsche Bank DBKGn.DE was increased to HK$4.9 billion from HK$3.95 billion committed in June

** Termination charges pushed up New World's net loss to HK$28.1 billion for the financial year ended June, from a net loss of HK$16.3 billion in the previous year

** Excluding non-cash losses, New World posted core profit of HK$2.2 billion, its first in three years

** YTD, stock down 12.9%, benchmark Hang Seng Index .HSI down 6.2%

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