Logan suspends interest payments on 5 dollar bonds
2022-08-08: [Article Link] On the evening of 7 August [the Great River Treasure Cube News], the Group issued an announcement stating that interest on the expiry of five extraterritorial United States dollar preferred notes would be suspended.
The announcement states that China’s real estate sector has entered a period of adjustment since the adoption of policies to promote the smooth and healthy development of the real estate market. Since the second half of 2021, there has been a succession of offshore debt arrears by some market participants, weakening the confidence of industry holders and further tightening liquidity. Less access to finance, less mood for home buyers, and shrinking financing and operating cash flows. As with other developers in China and the mainland, the Longlight Group has experienced a similar decline in contract sales in recent months. To ease liquidity pressures, the Group will introduce measures to speed up pre-sales and sales in developing and completed properties and to speed up the sale of refunds and other receivables; to sell assets at reasonable prices when needed to facilitate the repatriation of funds; and to actively implement measures to control administrative costs and capital expenditures.
In the area of offshore debt, the Group claims that, in the face of these challenges, the Group is committed to fulfilling the Group's financial responsibilities as part of that effort and believes that it is important to achieve a more stable capital structure that is essential for the operations and operations of the Group through the overall management of the company's external debt (“overall debt management programme”). To this end, the company has appointed Hytoon International Securities Ltd. as a financial adviser to assess its capital structure and explore all possible overall debt management options. The company has also appointed Sindh law firm as its legal adviser to support this work.
In order to advance the overall debt management programme and to treat all creditors fairly, the company will suspend interest on the maturity of the five offshore United States dollar preferred instruments, as described below.Rongqing stated that the suspension of interest on the above-mentioned offshore United States dollar preferred instruments could result in claims by corporate creditors for expedited repayment. To date, the company has not received any notice from the holder of the company's offshore United States dollar preferred notes to expedite repayment.
As a next step, the Group indicated that the company and its financial advisers would strive to treat different types of creditors in a fair and equitable manner, uphold the rights and interests of all holders in accordance with the law, and actively communicate with all offshore creditors on the overall debt management programme. The company seeks the support and cooperation of all offshore creditors to reach an overall debt management programme as soon as practicable, and based on the macroeconomic environment, recent developments in the real estate sector and the complexity of the company's external debt, the company and its consultants are still undertaking an in-depth assessment and exploration of the external debt management programme and launching an overall offshore debt management programme as soon as possible. In its announcement, the Group expressed its expectation of constructive dialogue with all creditors and of seeking the support and cooperation of all creditors to stabilize production operations and release asset values in order to achieve a more stable capital structure essential to the operations and operations of the Group.
* Reissued for technical reasons. * Reissued for technical reasons. * Reissued for technical reasons * In accordance with rule 69, paragraph 3, of the rules of procedure of the functional commissions of the Economic and Social Council.