China Energy Reserve makes plans to update restructuring proposal

By Sarah Lizee

Olympia, Wash., Jan. 8 – China Energy Reserve and Chemicals Group Overseas Capital Co. Ltd. announced that it will be updating its restructuring proposal for its HK$2 billion 6.3% guaranteed bonds due 2022 and the $400 million of 5.55% guaranteed bonds due 2021 issued by China Energy Reserve and Chemicals Group Holding Ltd., according to a notice.

The issuer said that the trustee has lodged an appeal to the Higher People's Court of Beijing against the decision of the Intermediate Beijing Court on Dec. 20 dismissing the trustee's claim and upholding the guarantor's submission that the Beijing Court does not have jurisdiction in connection with the legal proceedings.

In light of the ongoing matters and the wide range of feedback received from bondholders, the issuers and the guarantor will need to make further changes to the updated restructuring proposal, the company said.

The issuers and the guarantor remain “committed to taking a collaborative and constructive approach with all bondholders to facilitate a consensual restructuring of their debt,” the issuer said.

All interest and principal payments on the outstanding bonds continue to be suspended pending further notice.

Trading remains suspended on the bonds as it has since May 28, 2018.

The company provides energy development services and is based in Beijing.

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