China Fortune Land closes bond selection options for scheme creditors

Chicago, Jan. 17 – China Fortune Land Development Co., Ltd. and CFLD (Cayman) Investment Ltd. announced that scheme creditors may no longer make selections regarding their distributions for their bond holdings as the company undergoes restructuring, according to an announcement.

The deadline for choosing has passed. Bondholders had until 5 a.m. ET on Jan. 18.

As previously reported, existing noteholders will be distributed a certain amount from a new bond 1 (46.7% of the existing bonds principal) and then could opt for various distributions from two other new bonds (for the other 53.3%).

The principal on the existing bonds will translate into the three new bonds with the unpaid interest paid out as zero-coupon bonds, interest accrued on the existing bonds from the time when they are held by the scheme creditor from the last coupon payments dates to the restructuring effective date.

There is a mandatory debt-to-trust unit swap on bond 1.

The difference between bond 2 and bond 3 is that bond 2 has a mandatory debt-to-equity swap.

The company previously said it decided to ensure fair treatment of all holders of the existing bonds and pursue a holistic restructuring of the bonds by implementing the proposed restructuring via an English scheme. Once sanctioned by the English court and effective, the scheme would bind all holders of the existing bonds.

The scheme

Over the past several months, the company and its advisers have engaged in in-depth discussions of the terms of the restructuring of its existing bonds with holders of those bonds.

As of Sept. 16, China Fortune’s existing bonds include the following:

• $530 million 8 5/8% guaranteed bonds due February 2021 (ISIN: XS1953977326);

• $200 million 9% guaranteed bonds due June 2021 (ISIN: XS1835626810);

• $940 million 9% guaranteed bonds due July 2021 (ISIN: XS1860402954);

• $60 million 9% guaranteed bonds due December 2021 (ISIN: XS1924881334);

• $340 million 10 7/8% guaranteed bonds due December 2021 (ISIN: XS2275514458);

• $350 million 7 1/8% guaranteed bonds due April 2022 (ISIN: XS1972090119);

• $300 million 6.92% guaranteed bonds due June 2022 (ISIN: XS2189577906);

• $330 million 8Ύ% guaranteed bonds due September 2022 (ISIN: XS2232030788);

• $500 million 6.9% guaranteed bonds due January 2023 (ISIN: XS2100597256);

• $650 million 8.6% guaranteed bonds due April 2024 (ISIN: XS1972092248); and

• $760 million 8.05% senior notes due January 2025 (ISIN: XS2100597330).

D.F. King Ltd. (+44 20 8089 3951, +852 5803 0899; https://sites.dfkingltd.com/cfld; cfld@dfkingltd.com) is the information agent.

Admiralty Harbour Capital Ltd. (cfld@ahfghk.com) is restructuring financial adviser to the issuer.

Sidley Austin is restructuring legal adviser.

China Fortune is a real estate developer based in Beijing.

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