On 17 February 2022, Yida China Holdings Limited (3639.HK
) completed a Consent Solicitation for its US$191m senior notes due March 2022 (the “Notes”), where Admiralty Harbour acted as the sole Solicitation Agent.
Like many other developers in the industry, due to the recent tightening of lending policies to real estate developers and market concerns over the operations of developers, Yida has been experiencing liquidity issues. Despite many efforts, the Company still faces great pressures in making certain payments when due under the Notes as well as certain other onshore and offshore indebtedness. And as part of these efforts, the Company conducted the solicitation of consents in relation to the Notes, seeking to extend the maturity of the Notes and other amendments and waivers to have more time to generate cash flow and resolve the indebtedness.
From the commencement of the transaction on 7 February 2022 to the expiration date on 16 February 2022, in only 7 business days, Yida had obtained consents from the noteholders representing over 94% in value supporting the Consent Solicitation. After the completion of the Transaction, the maturity is extended to 30 April 2025 while holders may at their option put the notes on 30 April 2024. It is appreciated that the creditors provided their understanding and support to the Company, enabling all parties to overcome the difficulties together.
Congratulations to Yida!