China’s Shandong Sanxing updates restructuring of 7.99% notes due 2021

By Mary-Katherine Stinson

Lexington, Ky., July 28 – Shandong Sanxing Group Co. Ltd. plans to enter a restructuring support agreement with certain noteholders, paving the way to implementing a scheme of arrangement in the British Virgin Islands to restructure the existing 7.99% notes due 2021 (ISIN: XS1733826181), according to an announcement.

As of July 28, $200 million of the total principle of notes is outstanding.

The company stated in the notice that its existing internal resources may be insufficient to repay the existing notes, citing the U.S.– China trade war, the Covid-19 pandemic and challenging market conditions as contributing factors. The implementation of the scheme would improve the company’s financial condition, extend its debt maturity profile, strengthen its balance sheet and improve its cash flow management, the company noted in the release.

The company intends to appoint D.F. King Ltd. (+44 20 3885 1837, +852 5803 3889, sanxing@dfkingltd.com) as information agent for the scheme.

All scheme-related documents can be found on the transaction website at https://www.dfkingltd.com/sanxing/.

The notes were issued by wholly owned subsidiary Knight Castle Investments Ltd. on Jan. 23, 2018.

They are listed on the Singapore Exchange.

Binzhou, China-based Shandong Sanxing processes and distributes edible oil products.

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