Nuoxi defaults on 7½% bonds guaranteed by Peking University Founder

By Marisa Wong

Los Angeles, Jan. 28 – Nuoxi Capital Ltd. said it will not be able to make the principal and interest payable at maturity for its $350 million 7½% bonds due Jan. 28, 2022 guaranteed by Peking University Founder Group Co. Ltd. (Founder Group).

This payment is not expected to be made by the issuer or the guarantor, and non-payment is expected to continue for more than seven days, which is the grace period under the terms of the bonds.

As a result, the issuer believes this non-payment of principal and interest will constitute an event of default under the 7½% bonds.

In addition, the issuer anticipates that the failure to make the payments under the 7½% bonds will constitute a cross-default under its other bonds, namely its $300 million 7.45% bonds due 2022 guaranteed by Founder Group and $400 million 5.35% bonds due 2023 guaranteed by Hongkong JHC Co., Ltd. with the benefit of a keepwell deed and deed of equity interest purchase undertaking provided by Founder Group.

Trading of all three series of bonds was suspended with effect from Feb. 24, 2020 and remains suspended until further notice, with the exception of the 7½% bonds, which were delisted on Jan. 28.

Bondholders may contact Bank of New York Mellon, London Branch, the trustee of the bonds, should they require further information relating to the bonds.

Founder Group is a Beijing-based technology conglomerate.

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