Yuzhou says ‘close to’ agreement with ad hoc noteholder group

By Wendy Van Sickle

Columbus, Ohio, Dec. 22 – China’s Yuzhou Group Holdings Co. Ltd. and its advisers have made “meaningful progress” on a proposal to restructure the company’s offshore senior notes, according to an announcement.

The company said its objective is to ensure the long-term sustainable development of its business while safeguarding the interests of all stakeholders and preserving value.

Since the previous announcement on Aug. 6, Yuzhou said it has made headway with an ad hoc group of offshore senior noteholders and is “close to” reaching an agreement with the ad hoc group.

The company and its advisers are also engaging with other key creditor constituents in parallel on the proposed restructuring terms, Yuzhou reported.

“The company and its advisers will continue to work diligently and expeditiously towards finalizing the restructuring proposal with the [ad hoc group] and other key creditor constituents, and enter into restructuring support agreements with its creditors once such proposal has been finalized, in order to implement the proposed restructuring proposal. The company is confident of securing the support of all important stakeholders for the proposed restructuring proposal and will continue to provide significant updates on the progress of the restructuring to all stakeholders in a timely manner,” the announcement states.

The company’s financial advisers are Alvarez & Marsal Corporate Finance Ltd., BOCI Asia Ltd. and Haitong International Securities Co. Ltd.

The company’s legal adviser is Linklaters.

The ad hoc group has been advised by PJT Partners and Kirkland & Ellis.

As reported on Aug. 7 by Prospect News, Yuzhou’s listed debt includes:

• $650 million 6% senior notes due 2023 (ISIN: XS1508493498);

• $500 million 8½% senior notes due 2024 (ISIN: XS1954963580);

• $500 million 8 3/8% senior notes due 2024 (ISIN: XS2073593274);

• $400 million 7.7% senior notes due 2025 (ISIN: XS2121187962);

• $500 million 8.3% senior notes due 2025 (ISIN: XS2085045503);

• $645 million 7 3/8% senior notes due 2026 (ISIN: XS2100653778);

• $300 million 7.85% green senior notes due 2026 (ISIN: XS2215399317);

• $562 million 6.35% green senior notes due 2027 (ISIN: XS2277549155); and

• $300 million 5 3/8% senior perpetual securities (ISIN: XS1692346395).

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

© 2015 Prospect News.
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