Hilong Holding
Linklaters Urges Noteholders to Support Hilong Ad Hoc Committee Led by Deutsche Bank, Arkkan; Group Has Support of 45% of Due 2022s and 15-20% of 2020s; Intends to Seek Consensual Restructuring Using Exchange Offer as Starting Point
Thu 07/02/2020 07:42 AM
Relevant document:
Transcript
Linklaters, the legal advisor to an ad hoc committee of Hilong Holding’s noteholders, organised a call this evening (July 2) - which Reorg attended - urging other noteholders to support them in negotiating with the company to seek a consensual restructuring of both the $200 million 8.25% notes due 2022 and the $165.1 million 7.25% notes due 2020.
The call was hosted by Andrew Payne, a restructuring partner at Linklaters.
The ad hoc committee consists of Deutsche Bank and Arkkan Capital Management. So far the ad hoc committee members and other holders who have expressed support or wish to join the group hold more than 45%of the due 2022 notes and 15% to 20% of the due 2020 notes.
Linklaters pointed out that since an exchange offer for the due 2020 notes has failed, while the due 2022s can be accelerated due to the cross-default provision, the two sets of notes are pari passu and should receive equal treatment.
Noteholders who intend to join the ad hoc committee and would like to be involved in discussions or receive regular updates are encouraged to reach out to Linklaters as well as Arkkan and Deutsche Bank, Payne said on the call.
To avoid damaging the business of Hilong unnecessarily, the ad hoc committee intends to negotiate with Hilong on a consensual basis using the now expired exchange offer for the 2020s as a starting point, Payne said, adding that the company has contracts that can be terminated and there is a risk of causing damage to noteholders if aggressive actions are taken unnecessarily.
Additionally, the committee members will request Hilong to allow the financial and legal advisors to the committee to access its financials as well as to undertake to refrain from taking certain actions if it wants a consensual restructuring, Payne said.
Reorg’s legal analysis on the cross default and offshore creditor options is HERE. Hilong’s tear sheet is HERE.
Below is Hilong’s capital structure:
Transcript
Linklaters, the legal advisor to an ad hoc committee of Hilong Holding’s noteholders, organised a call this evening (July 2) - which Reorg attended - urging other noteholders to support them in negotiating with the company to seek a consensual restructuring of both the $200 million 8.25% notes due 2022 and the $165.1 million 7.25% notes due 2020.
The call was hosted by Andrew Payne, a restructuring partner at Linklaters.
The ad hoc committee consists of Deutsche Bank and Arkkan Capital Management. So far the ad hoc committee members and other holders who have expressed support or wish to join the group hold more than 45%of the due 2022 notes and 15% to 20% of the due 2020 notes.
Linklaters pointed out that since an exchange offer for the due 2020 notes has failed, while the due 2022s can be accelerated due to the cross-default provision, the two sets of notes are pari passu and should receive equal treatment.
Noteholders who intend to join the ad hoc committee and would like to be involved in discussions or receive regular updates are encouraged to reach out to Linklaters as well as Arkkan and Deutsche Bank, Payne said on the call.
To avoid damaging the business of Hilong unnecessarily, the ad hoc committee intends to negotiate with Hilong on a consensual basis using the now expired exchange offer for the 2020s as a starting point, Payne said, adding that the company has contracts that can be terminated and there is a risk of causing damage to noteholders if aggressive actions are taken unnecessarily.
Additionally, the committee members will request Hilong to allow the financial and legal advisors to the committee to access its financials as well as to undertake to refrain from taking certain actions if it wants a consensual restructuring, Payne said.
Reorg’s legal analysis on the cross default and offshore creditor options is HERE. Hilong’s tear sheet is HERE.
Below is Hilong’s capital structure:
Click HERE to enlarge
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