Shinsun Holdings proposes offshore debt restructuring

By Marisa Wong

Los Angeles, Feb. 21 – Shinsun Holdings (Group) Co., Ltd. issued an announcement on Monday regarding a proposed offshore debt restructuring.

The company said that over the past year it has faced challenges from various factors causing a strain on its industry, including the macroeconomy, the credit environment, the Covid-19 pandemic and the resulting tightened liquidity.

The company said it has engaged advisers to find ways to strengthen its business. To improve its financial stability and sustainability, the group is launching a restructuring of its notes.

The following notes are affected:

• $86.2 million 13% senior notes due January 2023 issued by Shinsun (ISIN: XS2434191156);

• $134,472,500 13% senior notes due January 2023 issued by Xiang Sheng Overseas Ltd. (ISIN: XS2434191073);

• $200 million 12% senior notes due August 2023 issued by Shinsun (ISIN: XS2369849745);

• $200 million 10½% senior notes due June 2022 issued by Shinsun (ISIN: XS2347497906); and

• $19,472,000 12½% senior notes due January 2022 issued by Xiang Sheng Holding Ltd. (ISIN: XS2069303811).

The restructuring is expected to be implemented through either a scheme of arrangement, an exchange offer or consent solicitation.

The company said it expects to begin the process of implementing the restructuring as soon as possible.

The company intends to enter into a creditor support agreement with holders of the notes listed above to support the implementation of the restructuring.

A copy of the CSA is available for download at https://projects.morrowsodali.com/shinsun. The term sheet is attached as a schedule to the creditor support agreement, which forms the basis for implementation of the restructuring.

The company is encouraging noteholders to accede to the CSA prior to the early consent fee deadline or base consent fee deadline to be eligible to receive the applicable consent fee.

A consenting creditor who accedes to the CSA by the early consent fee deadline at 4 a.m. ET on Feb. 27 will receive an early consent fee of 0.6% of the aggregate principal amount of the notes held by that creditor.

Consenting creditors who accede to the CSA by the base consent fee deadline at 4 a.m. ET on March 20 will receive a base consent fee of 0.15%.

In order to accede to the CSA, a completed and executed accession letter must be submitted to Morrow Sodali Ltd. (+44 20 4513 6933 or +852 2319 4130; shinsun@investor.morrowsodali.com; https://projects.morrowsodali.com/shinsun) as information agent via the accession portal: https://portal.morrowsodali.com/shinsun.

Admiralty Harbour Capital Ltd. (shinsun@ahfghk.com) is restructuring financial adviser.

Sidley Austin is restructuring legal adviser.

Shinsun is a real estate development company is based in Hong Kong.

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