Sino-Ocean calls fourth bondholder meeting for another grace period

By Marisa Wong

Los Angeles, Oct. 25 – Sino-Ocean Group Holding Ltd. published a notice on Oct. 24 to convene a fourth online meeting of bondholders, according to a company announcement on Wednesday.

The bondholders are holders of wholly owned subsidiary Sino-Ocean Holding Group (China) Ltd.’s corporate bonds due Oct. 19, 2025. As of Oct. 13, the balance of the corporate bonds is RMB 3 billion, and the current coupon rate is 4.76%.

The company’s overall objective is to gain more time to settle repayment of the bonds and push out the interest repayment date.

The fourth meeting will be held from 9 p.m. ET on Oct. 25 to 9 a.m. ET on Oct. 26.

The resolutions to be voted on at the newest bondholder meeting are, in sum, the following:

• Exemption of procedures for the notice of the fourth meeting of bondholders and the provisional proposals; and

• Extension of the repayment of interest of the bonds – namely, moving the deadline for payment of interest accrued from Oct. 19, 2022 to Oct. 18, 2023 to Nov. 17, with 10% of the outstanding interest to be paid no later than Nov. 10 – and the provision of credit enhancement measures.

If the second resolution passes, the addition of a grace period – an extension to Nov. 17 – will not trigger the default provisions under the bonds.

In addition, granting of a grace period means that no default interest will be imposed during the postponed repayment period for the interest; no default payment, overdue interest and default interest, among others, will be set up or incurred separately; and interest will continue to be payable at the current coupon rate.

As previously reported, holders had voted in favor of the grace period resolution at the third meeting convened from 9 p.m. ET on Oct. 19 to 4 a.m. ET on Oct. 20. The time of repayment of interest accrued was extended to on or before Oct. 26 as the date of completion of payment.

Resolutions were not passed at the first two meetings.

The company reiterated in each of its recent announcements that it is trying not to evade and revoke debts with respect to the corporate bonds. The issuer said in the event that it anticipates it will not be able to or it will fail to repay the principal and/or interest of the bonds as scheduled, it will formulate a reasonable debt repayment plan and proposal in a timely manner for the consideration of the bondholders and will strictly implement and enforce the debt repayment plan.

The property developer is based in Hong Kong.

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