China Oceanwide skips coupon for HK$563.9 million 6% convertibles

By Rebecca Melvin

Concord, N.H., Jan. 26 – China Oceanwide Holdings Ltd. said it was unable to make an interest payment on its five-year convertible notes due on Dec. 27 and was unable to cure the default within the 30 days’ grace period, according to a company news release Wednesday.

The company is now proactively communicating with holders of the notes to reach a consensus on a payment extension or other payment arrangements as soon as possible.

There are HK$563.9 million of the convertibles remaining outstanding of the original HK$600 million issue, and the interest payable last month was HK$16,917,000.

The interest was not paid due to a temporary cash flow problem resulting from various adverse factors including the macroeconomic environment, regulations on the real estate industry and the Covid-19 pandemic, according to the company’s release.

The company is a real estate business based in Beijing.

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