Hong Kong’s Powerlong misses July payment on notes, warns about November

By Mary-Katherine Stinson

Lexington, Ky., July 26 – Powerlong Real Estate Holdings Ltd. did not pay the principal and accrued interest payment due July 25 on the remaining non-tendered principal amount on one series of notes and warns it may not be able to make the payment due on Nov. 8 for another series, according to notice Tuesday.

The specific notes referenced are Powerlong’s 4% senior notes due July 2022 (ISIN: XS2368100033) and 7 1/8% senior notes due November 2022 (ISIN: XS2078556342).

According to the terms of the notes, the principal and interest payment on the $21.3 million remaining July 2022 non-tendered notes was due on the maturity date of July 25. The principal and interest payment on the $37.3 million of November 2022 non-tendered notes will be due on the maturity date of Nov. 8.

The company stated it may not be able to make the November payment even as it explores various financing arrangements.

As previously reported, the company completed an exchange offer for these two notes on July 15 in which 89.35% of the originally issued $200 million July 2022 notes and 87.58% of the originally issued $300 million November 2022 notes were validly tendered, accepted and canceled.

After the exchange offer the remaining outstanding principal of the July 2022 notes was $21,294,000, and the remaining outstanding principal of the November 2022 notes was $37,259,000.

The company urges noteholders to contact the company to come to mutually agreeable arrangements for settling the notes.

The real estate company is based in Hong Kong.

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