Greenland Global partially redeems, suspends trading for 6¾% notes

By William Gullotti

Buffalo, N.Y., July 28 – Greenland Global Investment Ltd. redeemed $72.5 million of its $500 million 6¾% notes due 2024 (ISIN: XS2016768439) amid a voluntary trading suspension, according to two company notices.

The company suspended trading for the series after failing to pay 5% of the outstanding nominal amount of the notes that came due June 25. The overdue balance, totaling $22.5 million, was paid July 25.

According to the notice, the requested suspension became effective July 26 and will remain in effect until resumed trading is deemed practicable.

Friday’s announced partial redemption represents 14.5% of the initial issue, which is guaranteed by parent company Greenland Holding Group Co., Ltd.

A total of $427.5 million, representing 85.5% of the initial issue, remains outstanding.

Moody’s Investors Service subsequently downgraded Greenland and was quoted in a press release saying, “Although the company made the payment after the seven-day grace period, the missed payment indicates the company's weak liquidity and constrained financial flexibility to meet its debt obligations over the next three to six months. The company will have to rely on asset disposals or other fundraising plans for debt servicing, although such fundraising activities carry high uncertainties.”

Greenland is a Shanghai-based real estate developer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.