Modern Land (China) to restructure bonds through scheme of arrangement

By Sarah Lizee

Olympia, Wash., Feb. 28 – Modern Land (China) Co., Ltd. said it has negotiated a restructuring of its 12.85% senior notes due October 2021 (ISIN: XS1986632716), 11.8% senior notes due February 2022 (ISIN: XS2110675860), 11½% senior notes due November 2022 (ISIN: XS2202152703), 9.8% senior notes due April 2023 (ISIN: XS2277613423) and 11.95% senior notes due March 2024 (ISIN: XS2127478316), according to a company announcement.

As of Friday, holders of about 37.4% of the total outstanding principal amount of the existing notes had signed the restructuring support agreement, which is expected to be implemented through a scheme of arrangement in the Cayman Islands.

A consenting creditor who validly holds restricted notes as of the fee deadline, which is 4 a.m. on March 22, will be eligible to receive a cash fee in an amount equal to 0.2% of the total principal amount held by the consenting creditor.

The fee will be paid in addition to the $22.92 million cash redemption fund – equivalent to 1.7% of the outstanding principal amount of the existing notes, to be split pro rata amongst creditors under the Cayman scheme.

The information agent is D.F. King Ltd. (+44 20 7920 9700, +852 3953 7230; modernland@dfkingltd.com), the restructuring financial adviser is Houlihan Lokey (China) Ltd. (moland@HL.com), and the restructuring legal adviser is Sidley Austin (sidleyprojecttenacity@sidley.com).

The Beijing-based property developer is focused on the development of green, energy-saving and eco-friendly residences in China.

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