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China Aoyuan Group had been negatively affected by events affecting the People’s Republic of China (PRC) real estate sector. The company announced a Restructuring Support Agreement (RSA) to effect a restructuring of its existing debt via two parallel Schemes of Arrangement.
They required outside support in the form of an Information and Tabulation Agent in a Standstill Agreement, RSA and Schemes of Arrangement.
Our role involved:
- Reviewed transaction documents, examining the mechanical aspects in particular.
- Announced the Standstill, RSA, and Scheme events to the market and acted as a conduit of information between China Aoyuan, Add Hero, and scheme creditors.
- Collected and tabulated RSA, voting, and exchange instructions.
- Certified voting results, acted as a Scrutineer at the Scheme meetings, and executed the exchange of the existing debt for the new securities (including HKex listed shares) and cash.
As a result of the support received from the scheme, creditors represented 79% of the total value of the Voting Scheme Claims for China Aoyuan and 88% of the total value of the Voting Scheme Claims for Add Hero. Both Schemes of Arrangement have been approved, and the Restructuring took place on the Restructuring Effective Date.
Our team helped China Aoyuan, Add Hero, and its advisors to be informed about all stages of the process and, as a result, complete a successful restructuring via:
- Settlement of physical shares and local transfer shares as part of the consideration and lender entitlements through the Clearing systems.
- Provided constant feedback to the working group via our real-time reporting system BondWatch, enabling precise tracking and processing of over 4,000 SWIFTs.
- We processed around 1,400 Restricted Notes Notices, 1,800 Accession Letters, and 2,000 Scheme Voting Forms via Portal, our proprietary platform. This reduced procedural burden and ensured an efficient experience for all market participants.
- Proactively targeted key bondholders or lenders to ensure timely submission of voting instructions and Recurrent Neural Networks (RNNs), Accession Letters, Scheme Voting Forms before the relevant deadlines.
- Developed an online Entitlements Calculator for scheme creditors’ easy access to the calculations of their entitlement under the restructuring and onward successful settlement.
Find out more about our Global Debt & Bondholder Services.
Summary
Our team supported China Aoyuan Group’s $7.2 billion debt restructuring by managing voting, settlement, and information flow, ensuring a smooth and efficient process for all stakeholders.
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