Reorg Blog

This week we take a look at Vyaire Medical, Intrado, Diamond Sports Group and the No Surprises Act. Click here to listen: https://soundcloud.com/reorg-radio/reorg-podcast-march-4-2022 Also featuring an interview with Evan Wallach, president and CEO of Global AirFinance Services Inc., an advisor to institutional investors and aircraft leasing companies, discussing how the legal ramifications of the Russian sanctions interact with aviation asset-backed securities. Editor’s Note: Each episode of Reorg’s weekly podcast series features a look back at highlights and top stories from the week in review and a preview of what’s to come in the week ahead, followed by a deep dive on...

In February, China rolled out a nationwide policy for escrow pre-sales accounts as reported -- while details are lacking, some of the mooted new measures are expected to ease the short-term liquidity pressure for Chinese real estate developers by standardising pre-sales escrow account supervisory practices and improving the flexibility of the use of pre-sales funds. In this update, Reorg highlights and compares the relevant regulatory constraints in China’s top 10 cities by GDP that affect a real estate development’s working capital intensity and therefore its developer’s liquidity. Background, Existing Policies Chinese real estate developers are required to deposit pre-sales proceeds...

Written by Stephen Aldred, managing editor, Asia Core Credit | Current volatility in high-yield bond prices of Chinese real estate developers points to a loss of trust in information sources the market previously used to gauge the truth. It’s the natural result of a steady stream of previously undisclosed private notes and guarantees, revelations of defective capital structures and resignations of auditors. But more fundamental to the problem is companies themselves being economical with the truth. Zhenro Properties is the latest developer to execute a U-turn on previous public guidance. The strong suspicion is it won’t be the last. Logically,...

Written by Rob Schach, Editor, Europe || The European leveraged finance market started the year where it had left off in 2021, with solid volumes in January as issuers tapped into continued undimmed demand. Even ESG black sheep cigarette filter manufacturer Cerdia managed to pull off a tricky refi. But the mounting realization that inflation won’t be moderating any time soon, heavy high-yield outflows and Russia on the brink of a second invasion of Ukraine brought an end to the party. By the end of January market jitters caused issuers to sweeten terms, and at the beginning of February deals...

Last week the European primary market saw just €11 billion-equivalent of new debt, half the issuance of the previous week. Unfavorable conditions hit the bond market hard, with Prax Group and AnaCap Financial pulling their bond offerings. Only Italian credit management solutions provider Cerved prevailed, pricing €1.05 billion floating-rate senior secured notes and €350 million senior secured fixed rate notes last week. Israeli resin-based homeware company Keter successfully placed a €100 million add-on to its existing term loan with a small group of existing lenders, after having postponed the issuance of a €1.175 billion seven-year term loan B due to...

Malaysia's economy returned to growth in the fourth quarter of 2021, as coronavirus curbs in the country were lifted and economic activity resumed. The nation’s gross domestic product rose 3.6% in the October to December period, faster than the 3.3% rise forecast in a Reuters poll and up from a 4.5% decline in the previous quarter. Meanwhile, the country’s full-year economic performance expanded 3.1% in 2021, rebounding from a 5.6% drop in 2020, CNA reported. A tax cut on crude palm oil (CPO) imports to India from 7.5% to 5% came into effect Feb. 13 as the world’s biggest edible...