China Evergrande sets meeting dates for creditor vote scheme meetings

Chicago, July 26 – China Evergrande Group announced the dates that the company will be convening meetings for creditors to vote on its schemes, according to an announcement.

The China Evergrande’s meeting will be held on Aug. 23.

Meetings for Scenery Journey Ltd. and Tianji Holding Ltd. will be held on Aug. 22.

China Evergrande schemes

Previously reported, under the China Evergrande scheme, the debt would be grouped into two classes.

Class A debts consist of 10 series of U.S. dollar-denominated senior secured notes, one series of Hong Kong dollar-denominated convertible bonds and one private loan.

Class C debts consist of debts including private loans, repurchase obligations and guarantees provided by the company in relation to certain offshore and onshore debts.

Creditors from either class may opt for one of two options.

The first option gives creditors new notes with a tenor of 10 to 12 years.

The second option allows creditors to convert their entitlements into new notes to be issued by the company with a tenor of five to nine years; a package of rights and instruments consisting of mandatory exchangeable bonds to be issued by the company exchangeable into shares in Evergrande Property Services Group Ltd., mandatory exchangeable bonds to be issued by the company exchangeable into shares in China Evergrande New Energy Vehicle Group Ltd. and mandatory convertible bonds to be issued by the company and security-linked notes to be issued by the company; or a combination of the notes and the rights package and instruments.

Class A creditors’ entitlements to distribution will be on a full accrued claim basis.

Class C creditors’ entitlements to distribution will be on a deficiency claim basis, which means the full accrued claim minus the assessed value of any related rights which are against any party that is not China Evergrande Group.

Scenery Journey scheme

Scenery Journey plans to implement a restructuring through a scheme of arrangement in the British Virgin Islands.

The creditors consist of holders of four series of U.S. dollar-denominated senior notes issued by Scenery Journey.

The creditors’ entitlement to distribution will be on the deficiency claim basis, like the class C creditors above.

Under the proposed scheme, each creditor will be allocated a pro rata portion of the new notes to be issued by Scenery Journey in an aggregate principal amount of $6.5 billion, based on the creditors’ entitlement.

Tianji scheme

Tianji plans to restructure its debt in a scheme of arrangement in Hong Kong.

The Tianji debts consist of guarantee obligations under the Scenery notes and certain other financial debt as set out in the term sheet.

Creditor entitlements will again be on the deficiency claim basis.

Each creditor will be allocated a pro rata portion of $800 million principal amount new Tianji notes.

The real estate development company is based in Shenzhen, China.

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