Shandong Ruyi Technology Group Co., Ltd.
Shandong Ruyi Mulls Further Deferring Dec. 15 Coupon Payment Under RMB 1B 7.5% 2022 MTN ‘19 RuyiTech MTN001’; Creditors’ Committee Against Co. Repaying Individual Bonds
Thu 10/29/2020 00:38 AM
Shandong Ruyi Technology Group plans to further defer the RMB 75 million ($11.2 million) coupon payment due Dec. 15 to a yet-to-be-determined date under its RMB 1 billion 7.5% medium term notes due 2022 “19 RuyiTech MTN001”, according to a source with direct knowledge of the situation and a source familiar with the matter. The creditors’ committee is against the company repaying individual bonds, said the sources.
The coupon was originally due March 15, before being extended twice, first to June 15 and then to Dec. 15, as reported. Ruyi provided no credit enhancement measures for the six-month extension to Dec. 15 but received consent from all holders at a June 15 bondholder meeting, as reported. Roughly 70% of the holders at the time were bank creditors. Continue reading for the Asia Core Credit team's coverage of Shandong Ruyi Technology Group, and request a trial to access reporting and analysis on hundreds of other credits.
About half of the MTNs are still held by a few bank creditors, said the sources. Some have granted verbal consent to the further extension during preliminary talks with the company, said the source with direct knowledge.
With the creditors’ committee driving the talks with Ruyi, individual bank creditors will likely defer the decision to the committee, said the second source. The creditors’ committee’s principle is to defer bond payments for as long as possible and keep interest rates during the deferral periods below the benchmark rate, according to the second source.
The extension proposal would need unanimous consent from holders.
As reported, Ruyi has been waiting for more than RMB 3 billion of funding from Cinda Asset Management Co. to repay debt. The funding is expected to be part of a comprehensive bailout plan that entails restructuring existing debt and raising new financing for Ruyi.
Below is the capital structure of Ruyi:
--Skylar Chen, Frances Yue
The coupon was originally due March 15, before being extended twice, first to June 15 and then to Dec. 15, as reported. Ruyi provided no credit enhancement measures for the six-month extension to Dec. 15 but received consent from all holders at a June 15 bondholder meeting, as reported. Roughly 70% of the holders at the time were bank creditors. Continue reading for the Asia Core Credit team's coverage of Shandong Ruyi Technology Group, and request a trial to access reporting and analysis on hundreds of other credits.
About half of the MTNs are still held by a few bank creditors, said the sources. Some have granted verbal consent to the further extension during preliminary talks with the company, said the source with direct knowledge.
With the creditors’ committee driving the talks with Ruyi, individual bank creditors will likely defer the decision to the committee, said the second source. The creditors’ committee’s principle is to defer bond payments for as long as possible and keep interest rates during the deferral periods below the benchmark rate, according to the second source.
The extension proposal would need unanimous consent from holders.
As reported, Ruyi has been waiting for more than RMB 3 billion of funding from Cinda Asset Management Co. to repay debt. The funding is expected to be part of a comprehensive bailout plan that entails restructuring existing debt and raising new financing for Ruyi.
Below is the capital structure of Ruyi:
Click HERE to enlarge
--Skylar Chen, Frances Yue
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.