Shinsun fails to pay coupon on 12% notes by grace period expiration

By Marisa Wong

Los Angeles, March 21 – Shinsun Holdings (Group) Co., Ltd.’s board of directors announced that the interest payment due on Feb. 18 under its $200 million 12% senior note due 2023 (ISIN: XS2369849745) has still not been made.

The company had a grace period of 30 days to pay the $12 million of interest due on Feb. 18.

The grace period has expired, according to the company announcement on Monday.

Shinsun said it is assessing its liquidity position, overall business operation and operating environment. The company said it will also engage in talks with the bondholders to try to find ways to address the current liquidity issue.

The company has appointed Sidley Austin as its legal adviser on the matter.

At the request of the company, trading of the 2023 notes on the Stock Exchange of Hong Kong Ltd. has been suspended, effective March 22, and will remain suspended until further notice, according to a separate announcement.

As of March 21, the non-payment had not triggered any cross-default under Shinsun’s $200 million 10½% senior notes due 2022 (ISIN: XS2347497906), because the company has not received any notice from the trustee or holders of at least 25% of the total principal amount of the 2023 notes to accelerate payment under the 2023 notes due to the non-payment.

The real estate development company is based in Hong Kong.

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