China’s Golden Wheel to skip interest payment on 16% notes due 2023

By Rebecca Melvin

Concord, N.H., Dec. 10 – Golden Wheel Tiandi Holdings Co. Ltd. said the interest payment due on its $144,999,000 outstanding principal amount of 16% senior notes due 2023 (ISIN: XS2348197554) will not be made as talks with beneficial holders of three series of notes regarding proposed amendments continue.

The interest due on Saturday and payable on Dec. 13 is not being made as the company pursues a consensual arrangement with beneficial holders and strives to preserve as much liquidity as possible to fulfill its fiduciary duties to treat all financial creditors fairly and equitably, according to a company announcement filed with the Hong Kong exchanges on Friday.

The company said it has made “productive progress” and reached consensus with the beneficial holders on key commercial terms. It is finalizing and agreeing to details and intends to announce the final consensual arrangement soon.

As reported on Monday, the company is seeking to amend its 12.95% senior notes due 2022 (ISIN: XS2100655807), its 14¼% senior notes due 2023 (ISIN: XS2199251823) and its 16% senior notes.

The 16% notes were issued in a previous exchange offer to noteholders who tendered their 2022 notes and 2023 notes for new notes.

Golden Wheel is seeking, amongst other things, extensions of the maturity dates of the notes.

The issuer cites recent macroeconomic conditions relevant to the Chinese real estate sector and the continuing regional outbreaks of Covid-19 in China since July.

To facilitate a consensual arrangement, Golden Wheel has hired Guotai Junan Securities (Hong Kong) Ltd. (+852 2509 5465, dcm.ferris@gtjas.com.hk) and Alvarez & Marsal Corporate Finance Ltd. (+852 3102 2600, ProjectFerris@alvarezandmarsal.com) as joint financial advisers.

The company has also hired Linklaters as a legal adviser.

Noteholders should contact the financial advisers for further information.

Golden Wheel is a Hong Kong-based commercial and residential property developer.

© 2015 Prospect News.
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