XJ International sketches out plan to settle bonds, hires adviser

By Marisa Wong

Los Angeles, April 15 – XJ International Holdings Co., Ltd. made a supplemental announcement on Sunday in relation to the winding-up petition announced on March 28.

After the petition came to XJ’s attention after trading hours on March 27, the company promptly convened a board meeting to resolve the matters.

The company noted that, as of April 14, the petition has had no material adverse impact on its financial performance, financial position and business operation.

The company said that it received notices from creditors claiming that despite the previously announced default of its bonds leading to some trigger events under the agreements between the company and the creditors, the creditors did not consider that default to be an event of default under other agreements. There are no events of default in relation to the company’s bank and other borrowings.

The company said it has outlined a preliminary plan for the settlement of its bonds. This plan includes, but is not limited to, seeking potential investors who may be interested in participating in the group’s fundraising activities to obtain working capital to repay or refinance the bonds; looking for potential investors to refinance the bonds from the petitioners; and liaising with the petitioners for the group’s debt restructuring plan, which includes amending the terms of the bonds, such as the term and coupon.

The company has also engaged a professional financial adviser to assess the potential impact of the petition on its financial performance and financial position and to help negotiate with the petitioner in relation to the possible debt restructuring plan to reach an amicable settlement for the petition.

Additionally, the company has planned to apply for a validation order from the court to safeguard the legitimate rights and interests of the company and its other stakeholders. If a validation order is not granted and the winding-up order is not dismissed or permanently stayed, all transfers of shares made after the start of the winding-up will be considered void.

The company said it believes that it is in the best interests of its creditors to achieve a reasonable debt restructuring plan and that the petition could harm its long-term viability and affect the recoverability of the creditors.

The company aims to continue communications with the bondholders.

Winding-up petition

As previously reported, after demanding repayment, a creditor had advanced its demand and filed a winding-up petition against XJ with the Court of First Instance of the High Court of Hong Kong.

Bank of New York, London Branch filed a petition on March 27, the company reported.

BNY claimed $324,706,096.59 due on the company’s $350 million 0% guaranteed convertible bonds due 2026.

The petition is scheduled to be heard on June 19.

Chengdu, China-based XJ International is an investment holding company engaged in higher education and secondary vocational education services.

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