Shinsun gets notice of acceleration from holders of 12% notes due 2023

By Marisa Wong

Los Angeles, April 4 – Shinsun Holdings (Group) Co., Ltd. received a notice of acceleration on April 1 from the trustee of its $200 million 12% senior notes due 2023 (ISIN: XS2369849745) at the written request of noteholders, according to a company announcement.

Under the notice of acceleration, the principal of, premium, if any, and accrued interest on the 2023 notes is immediately due and payable.

As announced on March 21, Shinsun failed to make the interest payment due on Feb. 18 under the 2023 notes and failed to make the payment within the 30-day grace period.

The 2023 notes acceleration notice constitutes a triggering event under Shinsun’s 10½% senior notes due 2022, Xiang Sheng Overseas Ltd.’s 13% senior notes due 2023 guaranteed by Shinsun and Shinsun’s 13% senior notes due 2023. As a result, bondholders have the right to demand payment under the indentures for these issues.

As of April 4, however, the company has not received any notice from holders of at least 25% in aggregate principal amount of any of these three series. These three series are therefore not immediately due and payable.

Following non-payment under the 12% notes due 2023, Shinsun has been in active discussions with bondholders working on a consensual plan to solve its current liquidity issue.

Trading of the 12% notes due 2023 was suspended effective as of March 22 and will remain suspended until further notice.

The company has also requested that trading of its 10½% notes due 2022 be suspended with effect from April 6.

The real estate development company is based in Hong Kong.

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