Kunzhi notifies holders of Peking University’s skipped CP payment

By Sarah Lizee

Olympia, Wash., Feb. 25 – China’s Peking University Founder Group Co. Ltd. did not pay the principal and interest of its super short-term commercial paper on Feb. 21 due to the Beijing First Intermediate People’s Court’s Feb. 19 ruling to begin the reorganization process, according to a notice.

Peking University Founder Group provides a keepwell deed and a deed of equity interest purchase undertaking for Kunzhi Ltd.’s $490 million of 6¼% guaranteed bonds due 2020 and $310 million of floating-rate guaranteed bonds due 2021. The notes are guaranteed by Founder Information (Hong Kong) Ltd.

Kunzhi notified holders that, to the best of its knowledge, “Founder Group will actively proceed with the reorganisation and make proper arrangements for the rights and interests of the holders of the SCP in accordance with laws and regulations.”

The issuer noted that it will keep bondholders updated through further announcements.

Peking University is a Beijing-based technology conglomerate.

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