Zhongliang reports holders of 92% of scheme debts accede to RSA

Chicago, Nov. 20 – Zhongliang Holdings Group Co. Ltd. announced that approximately 92% of creditors of its scheme debts have acceded to the restructuring support agreement, according to an announcement.

The company will possibly issue to scheme creditors on the restructuring effective date up to $140 million of 3% convertible bonds due July 1, 2027. Interest may be paid in kind the first year. After the second year, it should be paid in cash.

The conversion price will be higher than HK$1.20 per share and lower than HK$2.00 per share.

The minimum conversion price will be 163.74% over the closing price of HK$0.455 per share as quoted on July 13, the last trading day before the restructuring support agreement was signed.

The conversion price will reset on certain conditions.

The maximum amount of shares to be issued from the bonds will be 910 million.

If the conversion price resets, then a maximum of 1.365 billion shares would be issued.

The announcement also mentioned the possible issuance of $21 million of senior notes to a connected person, Liangzhong.

Liangzhong currently holds 78.79% of the company’s issued shares.

The scheme creditors represent $16,153,000 outstanding 8½% senior notes due May 2022, the $12,574,000 outstanding 9½% senior notes due July 2022, the $200 million outstanding 12% senior notes due April 2023, the $224,224,517 outstanding 8¾% senior notes due April 2023 and the $473,848,483 outstanding 9¾% senior notes due December 2023.

Zhongliang is a residential property management company based in Shanghai.

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