Yida China Holdings Limited Arbitration Consent Solicitation
After finalizing a proposal with its financial advisor to resolve a put option under $224.9M 14% notes Due 2022, exercisable on March 8, Yida China is launching a consent solicitation for a waiver of their arbitration award as well as a reduction of their coupon rate. The waiver of their arbitration award was constituted by a default clause stating that any judgment against the company that exceeds $15 million and is not paid within 90 consecutive days will allow for a waiver. Since the arbitration award against Yida China was not paid in the decided 90 days it was able to be waived.
Yida China will also be amending their repayment schedule as a result of the default and if the consent solicitation is lapsed, Yida might not have sufficient funds to settle the put option exercisable on March 8. To read our full analysis of the situation as well as the amended repayment schedule click here: https://reorg.com/update-1-yida-launches-consent-solicitation-to-waive-default-reduce-coupon-amend-repayment-schedule-under-224-9m-14-senior-notes-due-march-27-2022-to-pay-2-consent-fee/