China’s Hidili forms holder steering committee for 8 5/8% senior notes

By Susanna Moon

Chicago, Dec. 14 – Hidili Industry International Development Ltd. said it formed a steering committee of bondholders for its $400 million 8 5/8% senior notes, which were due on Nov. 4, 2015.

There is $182.8 million principal amount outstanding.

The steering committee was formed after initial discussions with some noteholders, according to a press release.

The committee has hired Latham & Watkins (Howard Lam / Rainbow Au-Yeung, +852 2912 2500, howard.lam@lw.com / rainbow.auyeung@lw.com) as its legal adviser and Borrelli Walsh Ltd. (Cosimo Borrelli / Michael Chan, +852 3761 3800 / +852 3761 3830, cb@borrelliwalsh.com / mc@borrelliwalsh.com) as its independent financial adviser. The company’s financial adviser is UBS AG Hong Kong Branch (+852 2971 6159 or OL-LM-Asia@ubs.com).

The company said it “encourages more holders to come forward to join the steering committee in order to facilitate discussions between the holders and the company about a possible restructuring of the notes.”

The company added that it cannot assure that the discussions with lenders or holders will lead to an acceptable proposal or restructuring.

Restructuring talks

Hidili said on Nov. 5 that it failed to pay the $190.6 million due on its 8 5/8% notes on the maturity date.

Before that, on Oct. 30, Hidili had said that it wanted to form a committee of noteholders to start a dialogue about a possible restructuring arrangement, as well as its indirect subsidiary’s failure to repay the RMB 289.6 million in principal amount on a short-term unsecured loan.

The company said it received written notice confirming that the unsecured loan lender intends to renew or extend the loan. The lender’s representatives also said that the lender does not currently intend to take enforcement action.

The coal and coke company is based in Panzhihua, China.

© 2015 Prospect News.
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