E-House defaults on 7 5/8% notes due 2022, triggers cross-default

By Marisa Wong

Los Angeles, April 18 – E-House (China) Enterprise Holdings Ltd. has failed to repay its 7 5/8% senior notes due April 18, 2022 at their maturity, according to a company announcement.

This constituted an event of default under the 2022 notes and also triggered a cross-default under the company’s convertible notes, which in turn has triggered a cross-default under the company’s 7.6% senior notes due 2023.

However, such an event of default triggered under the 2023 notes will not automatically result in acceleration of the 2023 notes, the company said. The 2023 notes will only be accelerated if the company receives written notice from the trustee or holders of at least 25% in aggregate principal amount of the 2023 notes outstanding.

As of Monday, the company has not received any request to accelerate the 2022 notes, 2023 notes or convertible notes.

The 2022 notes have matured and will be delisted from the Hong Kong stock exchange on April 19.

At the request of the company, trading of the 2023 notes will be suspended beginning on April 19 and will remain suspended until further notice.

As previously announced, the company has appointed China International Capital Corp. Hong Kong Securities Ltd. as the financial adviser and Skadden, Arps, Slate, Meagher and Flom as legal adviser.

Noteholders are encouraged to contact China International Capital (IB_homeproject@cicc.com.cn) to establish contact and initiate discussions.

The company said it is assessing the impact of the defaults and will provide updates when appropriate.

Shanghai-based E-House mainly offers real estate agency services in the primary market, real estate data and consulting services and real estate brokerage network services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.