Golden Wheel misses coupon on 10% notes due 2025, triggering default

By Marisa Wong

Los Angeles, Nov. 9 – China’s Golden Wheel Tiandi Holdings Co. Ltd. issued an update on its 10% senior notes due 2025 in an announcement on Wednesday.

Interest on the notes became due and payable on Oct. 11. The company has a grace period of 30 days to avoid an event of default. The grace period expires on Nov. 10, but the company does not expect that the payment will be made before that expiration.

This non-payment has caused an event of default under the notes. As a result, holders may demand immediate payment of principal and accrued interest.

As of Nov. 9, the outstanding principal amount on the notes amounted to $467,298,942.

The company said it has not received any notice regarding acceleration by holders as of Wednesday’s announcement.

The company already had preliminary discussions with the major holders.

The company said its board of directors will take steps to come up with a proposal that is beneficial to both the company and the noteholders.

In the meantime, the company will appoint a financial adviser to facilitate negotiations of various proposed amendments to the terms and conditions of the notes with holders.

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

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