Sino-Ocean extends voting deadline for subsidiary’s corporate bonds

By Marisa Wong

Los Angeles, July 31 – Sino-Ocean Group Holding Ltd. issued an update on Monday relating to the bonds issued by subsidiary Sino-Ocean Holding Group (China) Ltd.

In a July 25 announcement, the company said the bonds would very likely not be repaid on their Aug. 2 due date.

The company intends to negotiate with the holders of the corporate bonds to adjust the repayment arrangement, as previously reported. Specifically, the company will maintain communication with the holders of the corporate bonds, hold a meeting of the holders of the corporate bonds and negotiate a diversified debt resolution plan.

An online meeting was convened from July 27 to July 29, as reported.

On Monday the company announced that the voting deadline for the meeting was extended to Aug. 1 from July 29.

The company also mentioned that a second meeting of bondholders was to be convened from July 31 to Aug. 1.

Prior announcements

The company will be seeking consent to push the repayment period out an additional year.

The 4% interest will preferably remain unchanged.

The company is suggesting a repayment schedule of 10% repaid on Sept. 2, another 5% to be repaid each month in October, November, December, February and May and the remaining 65% on Aug. 2, 2024.

The company is also seeking a 15-day grace period on principal and interest repayments.

In return for the repayment arrangements, the company will add a credit enhancement and protection measures.

The company will provide a pledge guarantee with revenue rights attached to 50% equity interest in Beijing Yuanxin Real Estate Development Co., Ltd., a commercial complex in Beijing.

Sino-Ocean, knowing it has a liquidity problem, has been prioritizing the repayment of its public market debts. From 2022 through the first half of 2023, the company repaid RMB 20 billion in public market debt.

The company worked to enhance sales, accelerate cash collection, dispose of assets and control and reduce expenses.

However, property sales have still been contracting and the disposal of assets has become more difficult.

The property developer is based in Hong Kong.

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