Chinese property developer Yuzhou Group announced debt restructuring plan after defaulting on dollar bond payments last year.
Offshore bondholders were given three options to convert their existing debt into new notes, with the shortest tenor notes having a 70% haircut, according to a filing to the Hong Kong Stock Exchange.
Holders of its senior notes and senior perceptual bonds can choose between new notes with a short-term maturity, new notes with medium-term maturities together with new shares of the company, and new notes with long-term maturity. For short-term notes that have a three-year tenor and carry 6% coupon, every $10 of principal would be converted into $3 of new note for senior note holders.
The 4%-5.5% four- to seven-years medium-term notes would have a conversion of $10 of principal to $7 of new notes and $3 of new shares, while 10-year long-term notes have a one-to-one conversion rate but carry zero coupon.
Bondholders would receive a 0.2% of early bird consent fee and 0.1% consent fee if they support the restructuring proposal.