Hilong defaults on notes, appoints external advisers

By Taylor Fox

Chicago, July 1 – China’s Hilong Holding Ltd. announced that the company did not receive sufficient tenders for the exchange of their notes due June 22 and therefore has defaulted on the notes, according to a news release.

The default resulted in a cross-default on the company’s 2022 notes.

Hilong needed an 80% acceptance rate in its exchange, but fell short of the minimum acceptance amount.

Admiralty Harbour Capital Ltd. has been brought in as Hilong’s financial adviser and Sidley Austin has been appointed legal advisor in order to find a resolution.

There have not yet been any demands for repayment of debts or acceleration on the 2022 notes, but Hilong did receive a letter stating that certain holders of the 2022 notes have formed an ad hoc committee to seek a possible outcome.

The company encourages holders of the existing notes and the 2022 notes to join the ad hoc committee.

Hilong intends to work with noteholders to find a resolution.

Hilong is an integrated oilfield equipment and service provider based in Hong Kong.

© 2015 Prospect News.
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