UPDATE 1: 7:28 a.m. ET 5/20/2021: A bondholder holding more than 25% of Peking University Founder Group’s $350 million 8.45% guaranteed bonds due 2020 issued by Dawn Victor Limited have engaged Addleshaw Goddard to seek bondholders’ approval to choose the cash-plus-equity option for the bond series in the company’s onshore restructuring, according to two sources familiar with the matter.
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The bondholder who engaged Addleshaw believes that the cash-plus-equity option, which offers RMB 20.32 cash and 1.11 shares in a restructured PKU Founder, or NewCo, will provide the highest recovery and is feasible by transferring bondholdings to Qualified Foreign Limited Partnership, the sources said.
Addleshaw will provide further details on a conference call to be held on May 26 at 10 a.m. Hong Kong time.
The proposal will need to be passed either by 75% of all holders of the $350 million bond by value through an electronic voting system, or over 50% of holders by value attending a telephone conference that is hosted by trustee BNY Mellon and participated by at least 66% of all bondholders by value.
In a letter dated May 5, BNY Mellon previously told holders of PKU Founder’s guaranteed bonds can only choose the all-cash restructuring option under a
draft restructuring plan released in April, which offers an one-time cash settlement of RMB 31.43 for every RMB 100 of claim, as opposed to the other two options that feature partial cash payment with either debt-to-debt or debt-to-equity swap because the trustee is unable to hold equity interests or enter into a loan agreement with PKU Founder,
as reported.
Original Story 12:10 a.m. UTC on May 20, 2021
BNY Mellon to Host PKU Founder Bondholder Call on May 26 10 A.M. (HKT) to Discuss Selection of Repayment Options Under Draft Restructuring Plan
BNY Mellon, the trustee of Peking University Founder Group’s offshore bonds, has circulated a notice to holders of the $350 million 8.45% bonds due 2020 issued by Dawn Victor Limited and guaranteed by Founder Information (Hong Kong) Limited, stating that it will host a call on May 26 at 10 a.m. (HKT) for bondholders to discuss the selection of repayment options available under the
draft restructuring plan, according to a notice dated May 19 seen by Reorg.
Noteholders who are interested in participating in the call can email Lance Jiang at
L.Jiang@aglaw.com and Jessica Tsang at
J.Tsang@aglaw.com accompanied with a proof of holdings, the notice details.
According to the notice, the conference call is being hosted following a request from a bondholder, who is represented by Addleshaw Goddard and wishes to discuss with other bondholders the repayment options available if the draft restructuring plan is approved.