Sino-Ocean to convene meetings of holders of corporate bonds

By Marisa Wong

Los Angeles, Oct. 13 – Sino-Ocean Group Holding Ltd. made an announcement on Friday that wholly owned subsidiary Sino-Ocean Holding Group (China) Ltd. will convene meetings of holders of its corporate bonds due Oct. 19, 2025.

As of Oct. 13, the balance of the corporate bonds is RMB 3 billion, and the current coupon rate is 4.76%.

On Oct. 9, the subsidiary published a notice that it will convene the first online meeting of the holders of the corporate bonds for 2023.

The purpose of this first meeting is to consider resolutions on the following:

• Exemption of deadline for the notice of this first meeting and the submission of provisional proposals; and

• Amending the rules of the bondholder meetings to protect the interests of the bondholders, respond in a timely manner to the requirements for convening bondholder meetings, optimize the process for convening meetings and prudently advance the repayment of the bonds given the uncertainties on the repayment arrangement for the bonds in light of the current operation conditions of the company.

On Oct. 12, the issuer also published a notice of a second online meeting of the holders of the corporate bonds for 2023.

The second meeting will be convened on Oct. 16 to consider the following:

• Exemption of relevant procedures for the notice of the second meeting and the submission of provisional proposals; and

• Adding a grace period for the repayment of interest of the corporate bonds.

Given its current operating conditions, the issuer is seeking the consent of the bondholders to add a grace period for the repayment of interest in the following manner, provided that the coupon rate remains unchanged: if this resolution is passed by the second meeting, the time to repay interest accrued during the period from Oct. 19, 2022 to Oct. 18, 2023 will be extended to on or before Dec. 19 as the date of completion of payment.

After the resolution passes, the addition of the grace period will not trigger the default provisions as stipulated in the prospectus for the bonds. No default interest will be imposed during the postponed repayment period; no default payment, overdue interest or default interest, among others, will be set up or incurred separately; and interest will continue to be payable at the bonds’ coupon rate.

The company said it is trying not to evade and revoke debts with respect to the corporate bonds. The issuer said in the event that it anticipates it will not be able to or it will fail to repay the principal and/or interest of the bonds as scheduled, it will formulate a reasonable debt repayment plan and proposal in a timely manner for the consideration of the bondholders and will strictly implement and enforce the debt repayment plan.

Because there are still uncertainties as to the repayment plan, trading of the bonds on the Shanghai Stock Exchange has been suspended since the start of trading on Oct. 10.

The property developer is based in Hong Kong.

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