Latham & Watkins-Advised Ad Hoc Committee Holding $1.5B CFLD Bonds to Host Bondholder Call on May 13

Relevant Document:
Letter

An ad hoc committee of China Fortune Land Development, or CFLD’s offshore bondholders advised by Latham & Watkins will hold a call for all bondholders on May 13 at 8 p.m. Hong Kong time to provide an update on its current status, legal and business strategy and next steps, according to a letter seen by Reorg.

Bondholders can request the dial in information by email to projectcfld.lwteam@lw.com by May 12 at 8 p.m. Hong Kong time together with a confirmation of their holdings and other questions they want to address on the call.

The ad hoc committee is comprised of a number of international investment managers and investment advisors and, together with bondholders who have confirmed their support for the committee, collectively hold more than $1.5 billion of CFLD offshore bonds across all maturities and at least 25% of the outstanding principal amounts in respect of certain bond series.

The letter states that the committee consists of a single representative group of institutional bondholders with experience and resources to deal with distress situations and is currently looking to explore restructuring options.

The committee further said in the letter that while it has been advised on the enforcement options and legal strategies available, it will engage with key stakeholders and work towards a restructuring deal that “satisfies the goals of bondholders, the company and its other creditors.”

“Bondholder engagement with the company in constructive discussions, aimed at finding mutually acceptable restructuring terms, will offer the best set of outcomes for all parties,” the committee said.

As first reported by Reorg, the bondholders’ group was formed last month and is led by U.S.-based distressed fund Contrarian Capital Management.

The capital structure of China Fortune Land Development: