Reorg on the Record: Greenland Holdings’ Bond Extension Should Be Worrisome for Investors…
Wed Nov 9, 2022 12:11 pm Distressed Debt

China real estate high-yield bonds continue to show little cause for optimism. Greenland Holdings became the latest developer to launch a consent solicitation for all its outstanding offshore USD notes. In a now familiar pattern, the company had only recently reassured investors of its ability to make payments. The consent solicitation came less than five months after Greenland’s last such exercise, in June, for one series of notes. Its repeated attempt to amend and extend may be an indication that even state-controlled property companies aren’t immune to default.

The situation may become more worrisome as the Chinese saying of “保内弃外” or “ensuring onshore payments while giving up offshore bondholders” is heard being repeated among different developers and their onshore investor communities. Advisory firms have circled offshore bondholders helping them organize.

Shasha Dai

Our Asia teams are delivering the most in-depth data, analysis and reporting on hundreds of credits that are either stressed, distressed, performing, going through restructuring or post-reorg. Below is a glimpse into our editorial offering:

Logan Group
Logan Group has provided a preliminary restructuring plan for its onshore bonds, proposing to extend matured bonds for 45 months until 2026 and bonds that have yet to mature for 54 months until 2027, according to two sources familiar with the matter. » Continue Reading

Greenland Holdings
Holders of Greenland Holdings’ USD notes are displeased with the company’s extension proposal under a consent solicitation launched on Oct. 31 and are attempting to push back by coordinating a blocking stake in at least one of the nine bond series, according to two sources familiar with the matter. » Continue Reading

India NPLs / KSK Energy Ventures
Ahmedabad-based RARE Asset Reconstruction Ltd.’s INR 1.88 billion ($22.7 million) bid for INR 6.31 billion nonperforming loans (NPLs) of KSK Mahanadi Power Co. Ltd. held by state-owned Life Insurance Corporation of India has triggered a Swiss challenge auction. » Continue Reading

Azure Power Global Ltd.
Reorg’s tear sheet highlighted how governance issues could jeopardise fresh financing required to fund Azure’s FCF deficit, growth capex needs and short-term debts. On the other hand, key positives for this credit – should it be able to overcome its corporate governance issues – include relatively high central government counterparty exposure and the high revenue visibility from 25-year power purchase agreements. The analysis was also rounded up with a peer comparison With Adani Green, Greenko, Renew Power, other USD issuers in the Indian renewable space. » Continue Reading


With German corporates facing a winter of high gas prices, subdued consumer confidence and rising interest rates, what opportunities and challenges can investors and restructuring professionals expect? Join us – and guests from Milbank, PJT Partners, and Robus Capital – for a discussion on how German corporates and investors are adapting to the new macroenvironment. Register here.

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