On 8 March 2021, Yida China Holdings Limited (3639.HK) completed a Consent Solicitation for its US$225m senior notes due March 2021 (the “Notes”), where Admiralty Harbour acted as the Sole Solicitation Agent.
The Notes were puttable on 8 March 2021, and the Company had difficulty supporting the put due to the continued pandemic resulting in its tight liquidity position. Further, in October 2020, an award was issued by HKIAC directing the Company to pay a total obligation of US$209 million.
Admiralty Harbour constructively involved in the mediation among the parties and assisted in exploring alternative solutions to settle the judgement and on 4 March 2021, a settlement agreement under which the payment obligation of Yida is partially waived and partially amortized was entered into. Meanwhile, Yida had received consents from USD noteholders representing over 92% in value supporting the consent solicitation, allowing the Company to successfully avoid a potential default.
The complex liability management exercise involving a dispute resolution and a simultaneous capital market transaction demonstrated Admiralty Harbour’s capacity in facilitating bilateral and multilateral resolutions.