Modern Land (China) gets U.S. recognition of foreign proceedings

By Sarah Lizee

Olympia, Wash., July 19 – Modern Land (China) Co., Ltd. received recognition from the U.S. Bankruptcy Court for the Southern District of New York of its scheme proceedings in the Grand Court of the Cayman Islands, according to an order filed Monday.

The company gained support for an offshore debt restructuring in late March, as previously reported. The company agreed to implement the restructuring through a scheme of arrangement in the Cayman court.

The restructuring affects the company’s 12.85% senior notes due October 2021 (ISIN: XS1986632716), 11.8% senior notes due February 2022 (ISIN: XS2110675860), 11˝% senior notes due November 2022 (ISIN: XS2202152703), 9.8% senior notes due April 2023 (ISIN: XS2277613423) and 11.95% senior notes due March 2024 (ISIN: XS2127478316).

Consenting creditors who were holding restricted notes as of the March 24 fee deadline were deemed eligible to receive a cash fee in an amount equal to 0.2% of the total principal amount held.

The fee was to be paid in addition to the $22.92 million cash redemption fund – equivalent to 1.7% of the outstanding principal amount of the existing notes, to be split pro rata among creditors under the Cayman scheme.

A meeting for scheme creditors is scheduled for June 29.

The Beijing-based property developer is focused on the development of green, energy-saving and eco-friendly residences in China. The company filed Chapter 15 on June 3 under case number 22-10707.

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