Sino-Ocean bondholders vote for grace period at fourth meeting

By Marisa Wong

Los Angeles, Oct. 27 – Sino-Ocean Group Holding Ltd. announced the results of its fourth online meeting of bondholders convened from 9 p.m. ET on Oct. 25 to 9 a.m. ET on Oct. 26, according to a notice on Friday.

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%.

The company’s overall objective was to gain more time to settle repayment of the bonds and push out the interest repayment date.

Voting results were as follows for the resolutions proposed at the fourth bondholder meeting:

• For the resolution relating to exemption of procedures for the notice of the fourth meeting of bondholders and the provisional proposals, 76.6192% of the votes were in favor of the resolution, 23.1652% were against, and 0.2156% abstained; and

• For the resolution to extend the repayment of interest of the bonds – namely, moving the deadline for payment of interest accrued from Oct. 19, 2022 to Oct. 18, 2023 to Nov. 17, with 10% of the outstanding interest to be paid no later than Nov. 10 – and add credit enhancement measures, 73.9840% of the votes were for the proposal, 25.8004% were against and 0.2156% abstained.

Because more than 50% of the votes cast were in favor of each of the resolutions, both of them were passed.

As previously announced, passing of the second resolution means the addition of a grace period – an extension to Nov. 17 – will not trigger the default provisions under the bonds.

In addition, granting of a grace period means that no default interest will be imposed during the postponed repayment period for the interest; no default payment, overdue interest and default interest, among others, will be set up or incurred separately; and interest will continue to be payable at the current coupon rate.

The company also announced on Friday that following the success of the fourth meeting, trading of the bonds on the Shanghai stock exchange will resume on Oct. 30. The bonds had been suspended since Oct. 10 due to uncertainties surrounding the repayment plan for the bonds.

The property developer is based in Hong Kong.

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