BREAKING: Tsinghua Unigroup Offshore Noteholders Receive Custodian Requests For Disclosure of Holdings

Holders of certain Tsinghua Unigroup offshore bonds - including its $450 million 6% notes due Dec. 10, 2022, $1.05 billion 4.75% notes due Jan. 31, 2021, and $750 million 5.375% notes due Jan. 31, 2023 - have received a letter from their custodians, requesting them to disclose their holdings as per the company’s request, according to a letter reviewed by Reorg. Continue reading for the Asia Core Credit team's analysis of Tsinghua Unigroup, and request a trial to access reporting and analysis of hundreds of other stressed, distressed and performing credits. 

Tsinghua Unigroup announced to the Hong Kong stock exchange on Nov. 18, that it was not able to redeem its RMB 1.3 billion onshore bonds which matured on Nov. 16 due to liquidity issues, causing an event of default under the onshore bonds.

Tsinghua Unigroup Co., Ltd.’s non-payment and default as issuer under its RMB 1.3 billion ($196.1 million) 5.6% private notes - subject to any applicable grace period - is likely to have triggered the cross default provisions under Tsinghua’s $450 million 6% bonds due 2020 -- as well as potentially the remainder of the company’s offshore bond issuances, according to Reorg’s legal analysis.

--Simon Lee