Sino-Ocean updates meetings for holders of corporate bonds

By Marisa Wong

Los Angeles, Oct. 17 – Sino-Ocean Group Holding Ltd. made some updates to the bondholder meetings announced on Friday, according to notices on Tuesday.

The bondholders are holders of wholly owned subsidiary Sino-Ocean Holding Group (China) Ltd.’s 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%.

First meeting

The subsidiary had published a notice on Oct. 9 that it will convene the first online meeting of the holders of the corporate bonds for 2023 on Oct. 18.

According to Tuesday’s announcement, the company put forward two provisional proposals on Oct. 16 for consideration at the first meeting.

These provisional proposals are broadly:

• Exemption of deadline for the notice of the first meeting and the restrictions and deadline for the person making provisional proposals; and

• Adding the grace period and providing credit enhancement measures for the repayment of interest of the corporate bonds.

If that grace period resolution is passed by the first meeting, the time of repayment of 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.

The company also announced on Tuesday that it is extending the voting deadline for the first meeting to 12 a.m. ET on Oct. 19 from 10 a.m. ET on Oct. 18.

Second meeting

As announced on Friday, the issuer also published a notice on Oct. 12 of a second online meeting of the holders of the corporate bonds for 2023. The second meeting was to be convened on Oct. 16.

On Tuesday, the company said it was extending the voting deadline for the second meeting to 12 a.m. ET on Oct. 19 from 9 a.m. ET on Oct. 16 in order to communicate and negotiate with bondholders.

As previously announced, the purpose of the second meeting is for holders 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.

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.

More details

After the resolutions pass, the addition of the grace period and credit enhancement protection measures 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, as previously reported.

The company reiterated 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.

As noted before, 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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