Sino-Ocean receives demand letters, notices of default for multiple notes

By Marisa Wong

Los Angeles, Nov. 10 – Sino-Ocean Group Holding Ltd. provided an update regarding its debt management, further to its announcements on Sept. 15 and Oct. 12.

As of Nov. 10, the group has received demand letters, acceleration notices and other legal letters with respect to some of its offshore debt.

Specifically, the group has received a demand letter with respect to, among others, the payment of outstanding accrued interest under the 6% guaranteed notes due 2024 issued by Sino-Ocean Land Treasure Finance I Ltd., the 5.95% guaranteed notes due 2027 issued by Sino-Ocean Land Treasure Finance II Ltd. and the 4¾% guaranteed notes due 2029 issued by Sino-Ocean Land Treasure IV Ltd. from the trustee of those securities.

The group has also received a notice of event of default in relation to the 2.7% guaranteed green notes due 2025, the 3¼% guaranteed green notes due 2026 and the 4¾% guaranteed notes due 2030, all issued by Sino-Ocean Land Treasure IV, from the trustee of those securities. The event of default resulted from the non-payment of interest under the 2024 notes, 2027 notes and 2029 notes.

The company noted that before completion of its holistic debt restructuring, it may continue to receive similar letters and notices from its creditors.

At the request of the relevant issuers of the offshore dollar-denominated securities, trading of the offshore securities on the Stock Exchange of Hong Kong Ltd. has been suspended with effect from Sept. 15 until further notice.

The company said that at this stage it is working “relentlessly” to ensure delivery of completed properties under pre-sale arrangements and the continuation of its business operations.

The group intends to concentrate all necessary resources to ensure delivery of current projects, to accelerate the sale of properties under development and completed properties and to stabilize its business operations to protect the interests of the home buyers, the group’s partners and all stakeholders.

In addition, the company said, it is in the process of implementing stringent cost reduction and efficiency enhancement measures with an aim to enhance operational efficiencies.

As of Nov. 10, the group continues to maintain normal business operations.

The company reiterated that it has continued to work with its financial adviser and legal adviser to assess its current financial and operational conditions and to formulate a solution.

As previously reported, Houlihan Lokey (China) Ltd. (+852 3551 2300; Sino-Ocean@HL.com) is the financial adviser and Sidley Austin as its legal adviser.

The property developer is based in Hong Kong.

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