Sino-Ocean warns that real estate industry has further deteriorated

Chicago, Oct. 12 – Sino-Ocean Group Holding Ltd. provided an update regarding its debt management, further to its Sept. 15 notice.

Since Sept. 15, the company says that the real estate industry in China has entered a new stage. The operating environment has remained severe and the overall liquidity has not improved.

The company continues to work with its financial adviser and legal adviser to formulate a solution.

Discussions continue with the bilateral and syndicated loan lenders and noteholders.

The company announced in September that it was suspending payments on several offshore dollar-denominated securities.

However, the group has obtained the $3.8 million interest payment on its 3.8% credit enhanced green notes due 2025 issued by Sino-Ocean Land Treasure Finance IV (ISIN: XS2432500309). The payment will be made when due on Oct. 26.

The notes have the full coverage of an irrevocable standby letter of credit, which uses the group’s “valuable assets as collateral,” the update noted.

According to the update, solutions for the group’s debt issues will be based on the different rights of different stakeholders.

Houlihan Lokey (China) Ltd. (+852 3551 2300; Sino-Ocean@HL.com) is the financial adviser and Sidley Austin as its legal adviser.

The property developer is based in Hong Kong.

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