Yuzhou defaults on coupon payments, distributions for four notes

By Marisa Wong

Los Angeles, May 31 – Yuzhou Group Holdings Co. Ltd. has failed to make the interest payments for three series of its notes and the distribution on its senior perpetual securities, according to a company announcement on Tuesday.

Specifically, interest on the company’s 6% senior notes due 2023 in the amount of $19.5 million, interest on its 8 3/8% senior notes due 2024 in the amount of $20,811,875 and interest on its 9.95% green senior notes due 2023 in the amount of $8,905,250 became due and payable, and the grace period for those coupon payments has expired. The company did not make the payments by the expiry.

In addition, a distribution on the perpetual securities in the amount of $8,062,500 became due and payable, but the company did not make the payment.

The non-payment has caused an event of default under each series of notes, respectively.

As a result, holders of the outstanding securities may demand immediate repayment of the principal and accrued interest or take other actions, as applicable, under the respective indentures of the securities.

The company said it has not received any notice regarding acceleration or other actions by holders of the 6% notes due 2023, 8 3/8% notes due 2024, 9.95% notes due 2023 and perpetual securities as of Tuesday.

Currently, the outstanding principal amount of the 6% notes is $650 million, the outstanding principal amount of the 8 3/8% notes is $497 million, the outstanding principal amount of the 9.95% notes is $179 million, and the outstanding principal amount of the perpetual securities is $300 million.

As announced in March, trading of the four series, along with seven other series of the company’s securities, has been suspended until further notice.

The property developer is based in Shanghai and Shenzhen, China.

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