China’s Oceanwide misses April 30 coupon, aims to settle by Aug. 23

By Marisa Wong

Los Angeles, June 11 – Oceanwide Holdings International Development III Co., Ltd. did not make the April 30 interest payment on its 12% notes due 2021 guaranteed by Oceanwide Holdings Co., Ltd., according to a company announcement.

The non-payment has continued for a period of more than 30 consecutive days.

However, Oceanwide plans to settle the unpaid interest in full by Aug. 23.

The Beijing-based conglomerate said that it is facing a temporary cash flow issue due to the adverse impact of a number of factors, including the macroeconomic environment, regulations on real estate and financial industry and the Covid-19 pandemic.

Because of the missed payment, the trustee of the notes or holders of at least 25% of the notes may, by written notice to the company, declare the principal and accrued interest on the notes to be immediately due and payable.

Oceanwide said it is in “active” discussions with holders of at least 99.9% of the notes. As of June 11, it has not received any notice from the trustee or any holder with respect to exercising the acceleration right.

As of June 11, $210.2 million of the original $215 million principal amount remains outstanding.

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