Harbin Electric buyout story updated to reflect China Development Bank loan)NEW YORK ( TheStreet) -- Harbin Electric ( HRBN) is seeking to become the first U.S.-traded Chinese stock to go private through a leveraged buyout structure, but its investment partner, Baring Private Equity Asia Group, is no longer to be a significant partner in the deal. Harbin shares are down 10% in Tuesday trading. Harbin Electric CEO Tianfu Yang and Baring previously announced a deal to take Harbin private at a price of $24 per share, with Goldman Sachs serving as the financial adviser to the Harbin CEO. On Tuesday morning, Harbin Electric put out a press release stating that Baring's participation in the deal will now be limited to a right, not an obligation, to provide up to 10% of equity and/or debt financing. The Harbin CEO stated his intention to pursue the $24 per Harbin share private buyout offer and seek alternative sources of financing. The documents filed with the Securities and Exchange Commission are worded in such a way as to state that Yang asked Baring to exit its proposed role in the private transaction. Harbin Electric announced earlier this week that it had signed a loan agreement with the China Development Bank for $50 million, $15 million of which was earmarked to pay off outstanding short-term debt. The Harbin Electric private buyout proposal garnered attention for being the first of its kind involving a U.S.-traded Chinese stock.
RINO) had a fraud case brought against it, Harbin shares sank due to is use of the same auditing firm, Frazer Frost. -- Written by Eric Rosenbaum from New York. >To contact the writer of this article, click here: Eric Rosenbaum. >To follow the writer on Twitter, go to Eric Rosenbaum. >To submit a news tip, send an email to: firstname.lastname@example.org.