Nuoxi defaults on 7.45% bonds guaranteed by Peking University Founder

By William Gullotti

Buffalo, N.Y., Oct. 17 – Nuoxi Capital Ltd. said it is unable to make the principal and interest payable at maturity for its $300 million 7.45% bonds due Oct. 16, 2022 guaranteed by Peking University Founder Group Co. Ltd. (Founder Group), triggering a cross-default, according to two notices on Monday.

The default was anticipated in January, as reported, when the company defaulted on its $350 million 7½% bonds due Jan. 28, 2022 at maturity.

Payment was not made by the issuer or the guarantor, and non-payment is expected to continue for longer than the seven-day grace period.

This latest default will subsequently trigger a cross-default for the issuer’s $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 the issuer’s bonds was suspended on Feb. 24, 2020 and remains suspended until further notice, with the exception of the 7.45% bonds, which will be delisted Oct. 17.

Bank of New York Mellon, London Branch is the trustee of the bonds.

Founder Group is a Beijing-based technology conglomerate.

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