Zhenro Properties anticipates defaulting on three series of notes

By Mary-Katherine Stinson

Lexington, Ky., March 6 – China’s Zhenro Properties Group Ltd. issued updates relating to three series of debt securities in an announcement on Monday.

As of March 6, the company has not made payment of the remaining outstanding principal of $200 million for certain securities (ISIN: XS2013512608), $728,623,000 for the March 2022 notes (ISIN: XS2449192942) and RMB 1,589,980,000 for the March 2022 RMB notes (ISIN: XS2449193320) and the outstanding distributions or interest. All outstanding principal and interest is due on the March 6 maturity date.

Failure to pay that principal at maturity will constitute an event of default under the notes, and failure to pay the interest upon expiration of the 30-day grace period after maturity will also constitute an event of default.

The expected non-payment has not triggered and will not trigger any cross-default under the terms of the company’s 13 other debt securities, the company noted.

The March 2022 notes and the March 2022 RMB notes will be delisted from the Stock Exchange of Hong Kong Ltd. on March 6.

After delisting, noteholders may contact the company at ir@zhenro.com regarding the March 2022 notes and the March 2022 RMB notes.

The company also announced it has been working with its advisers on the preparatory work for the offshore Holistic Liability Management Solutions to reach a consensual soliton for the stakeholders’ benefit.

As of March 6, the independent business review, the identification of the company’s holders of securities and offshore notes, due diligence review, cash flow forecast and liquidation analysis over the group have been substantially completed.

A preliminary proposal is expected by the end of March.

Zhenro is a Shanghai-based real estate developer.

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