Dr. Peng seeks consents for 7.55% guaranteed notes originally due 2020

Chicago, Nov. 29 – Dr. Peng Holding Hongkong Ltd. has started a consent solicitation for its $500 million 7.55% guaranteed notes due 2020 and extended to 2022 (ISIN: XS1611011922), according to an announcement.

There are $244,751,825 of the notes outstanding.

The ability of the group to make payments on or to redeem secured debt and the notes substantially depends on the outcome of the sale of the Pacific Light Cable Network.

The group has been in discussions with potential buyers but needs significantly more time for the sale.

Dr. Peng has suggested a maturity date extension and modifications to the terms and conditions of the notes.

The issuer is holding a noteholder meeting on Dec. 20.

At the meeting, noteholders will be asked to approve certain resolutions for the purposes of modifying certain terms and conditions of the notes.

The issuer “encourages the noteholders to participate in the consent solicitation and looks forward to timely creditor support to ensure the long-term success of the group’s business for the benefit of all stakeholders.”

Additionally, noteholders are urged to be patient.

Any default under the notes may adversely affect potential transactions and will prevent the group from obtaining the necessary financial resources and exacerbate the group’s illiquidity, the company said.

Alvarez & Marsal Corporate Finance Ltd. has been retained as a financial adviser (+852 3102 2600, DrPeng@alvarezandmarsal.com).

Morrow Sodali Ltd. is the information and tabulation agent (+852 2319 4130, +44 20 4513 6933, DrPeng@investor.morrowsodali.com, https://bonds.morrowsodali.com/drpeng).

The Chinese media and entertainment company provides broadband and cloud computing services.

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