Cheergain announces consent solicitations for 15% notes due 2021

By Cady Vishniac

Detroit, Dec. 22 – Cheergain Group Ltd. has announced consent solicitations for its 15% senior notes due 2021 (ISIN: XS1894418356), according to a release.

The proposed changes to the notes’ indenture would waive any events of default resulting from the company’s debt related to a refinancing in China. Cheergain has failed to pay down this debt upon maturity, and lenders have obtained final judgments and orders against the company.

With consents waiving the default, the company will be able to draw down on a refinancing loan it received in September.

The amendment would also make several changes to the limitations on debt, liens, restricted subsidiaries, financial transactions with shareholders and affiliated companies, mergers and asset sales under the indenture of the notes to allow for a new secured refinancing loan guaranteed by previously restricted subsidiaries.

The amendment’s termination date would be March 31, 2021 or sooner if the company’s Chinese debt is refinanced before March 31, 2021.

The solicitation expires at 11 a.m. ET on Dec. 30. Holders who deliver their valid consents by this date will receive cash payments of $15 per $1,000 of notes, with another payment of $35 per $1,000 of notes to be paid on upon the completion of the company’s refinancing on March 31.

The information and tabulation agent for the consents is Morrow Sodali Ltd. (+852 2158 8404, +44 20 7355 0628, +44 20 7355 0615, 212 324-4934, cpg@investor.morrowsodali.com, https://bonds.morrowsodali.com/cpg).

Cheergain is a subsidiary of China Properties Group Ltd., a Hong Kong-based real estate developer focusing on large-scale residential and commercial projects in China's major cities.

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