Yida China fails to make Sept. 30 consent payment to noteholders

By Marisa Wong

Los Angeles, Oct. 3 – Yida China Holdings Ltd. was scheduled to make a payment on Sept. 30 in the amount of $3.45 million on a pro rata basis to holders of its senior notes due 2025 (ISIN: XS2130508000).

In an announcement on Monday, however, the company said it has not made this payment.

The company cited unfavorable factors in the macro economy, the real estate market and financial environment and multiple rounds of epidemics as reasons for the non-payment.

The non-payment may lead to holders demanding for acceleration of repayment under the senior notes, the company noted.

As of Oct. 3, the company has not received any notice regarding acceleration action by holders of the senior notes.

The company said it will maintain active communications with creditors and will update the market as soon as practicable on any material developments.

Background

As announced in February, Yida received the necessary consents to effect the proposed waivers and amendments to the indenture governing the senior notes originally due 2022.

The consent solicitation began on Feb. 7 and expired at 11 a.m. ET on Feb. 16.

As of the expiration time, holders of over 94.04% of the outstanding notes had delivered their consents.

The company arranged to pay the consent fee in two installments of $1.15 million and then $3.45 million.

Yida China sought a waiver of an event of default in relation to its failure to pay outstanding principal and interest, as well as other payment defaults.

The company also requested waivers of other breaches and defaults arising from its payment failures.

Yida proposed to amend the note indenture to extend the maturity date to April 30, 2025 from March 27, 2022; to amend the repayment schedule to reflect that maturity date; to change the interest rate to 6%, effective as of Sept. 27; to change the interest payment dates to April 30 and Oct. 30 of each year; to add a requirement to pay to holders on a pro rata basis $3.45 million in cash on each of Sept. 30, 2022 and Dec. 31, 2022 in lieu of accrued interest that should have been paid on Sept. 27, 2021; and to change the default interest rate to 2% over the new interest rate from 16%.

The company also sought to include an optional redemption right for the company during the extended term of the notes at varying redemption prices and to add a put option for holders to require the company to repurchase the notes at par on April 30, 2024.

In addition, Yida sought various consents relating to the notes’ covenants.

The company offered to holders who delivered their consents by the expiry of the solicitation a pro rata share of $4.6 million. The first installment was to be paid within 10 business days after the effective time, and the second installment was originally to have been paid on June 30.

Morrow Sodali Ltd. was the information and tabulation agent (+44 20 4513 6933, +852 2319 4130, Yida@investor.morrowsodali.com, https://bonds.morrowsodali.com/Yida).

Admiralty Harbour Capital Ltd. was the solicitation agent (yida_enquiries@ahfghk.com).

The company is a business park developer and operator in China with headquarters in Shanghai.

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