China Energy Reserve revises restructuring proposal for 2022 bonds

By Rebecca Melvin

New York, March 25 – China Energy Reserve and Chemicals Overseas Co. Ltd. and China Energy Reserve and Chemicals Group Co. Ltd. are petitioning for an extension for coupon and principal payments regarding their HK$2 billion 6.3% guaranteed bonds due 2022 and advised holders of a revised updated restructuring proposal, according to a notice.

The issuer and guarantor said they remain committed to taking a collaborative approach with all bondholders to facilitate a consensual restructuring of the debt.

The bond proceeds are ongoing, and bondholders are invited to submit feedback on the proposal via the companies’ financial adviser FTI Consulting.

As previously reported, the companies received an acceleration notice for the 2022 bonds, and on Jan. 24 the trustee commenced legal proceedings in the Court of First Instance of the High Court of Hong Kong Special Administrative Region.

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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