Admiralty Harbour completes the debt restructuring for Shandong Yuhuang Chemical
On 15 December 2020, Rock International Investment Inc. (the “Company”), a subsidiary of Shandong Yuhuang Chemical Co., Ltd. successfully completed a BVI scheme of arrangement giving effect to the restructuring of Rock International’s US$300m USD notes due 27 March 2020, guaranteed by Shandong Yuhuang.
Using proceeds from the sale of Shandong Yuhuang’s equity interest in a US project, the Company was able to fund a restructuring proposal involving a cash exit for the noteholders.
Holders representing 98.58% of the outstanding principal amount voted in the scheme, of which, 100% voted in favour, one of the highest supporting rates the Asia restructuring market has seen, bringing the scheme to a successful approval by the BVI court.
The Company also obtained a recognition of the BVI scheme under Chapter 15 of the US Bankruptcy Code, protecting the US project after the sale.
Admiralty Harbour acted as the USD notes restructuring financial adviser to the Company. This transaction marks the only successfully completed in-court restructuring of USD notes by a China-based business in 2020. The BVI scheme and the Chapter 15 process were swiftly executed within 1.5-months, an extraordinarily rapid timetable for a transaction of this nature.
Congratulations to Shandong Yuhuang!