Yuzhou Group Holdings Company Limited

Event Publicly Available Information:

The Eligible Market Participant submitted the following information in respect of its submission. The below information and comments were provided by the Eligible Market Participant and are not statements of the Asia Ex-Japan Determinations Committee.

Principal payments on 6.00% Senior Notes due 2022 (the 2022 Notes) and on 8.625% Senior Notes due 2022 (the 2022 II Notes, together with the 2022 Notes, the Senior Notes).

On 20 January 2022, the Reference Entity, Yuzhou Group Holdings Company Limited (formerly known as Yuzhou Properties Company Limited), issued US$453,351,400 in aggregate principal amount of the New Notes in exchange for US$477,212,000 in aggregate principal amount of the Exchange Notes (comprising US$265,654,000 of the 2022 Notes and US$211,558,000 of the 2022 II Notes). The aggregate principal amount of the remaining Senior Notes is US$104,857,000.

The Reference Entity announced on 24 January 2022, that “Having carefully considered its liquidity position in light of the deteriorating real property market and tightening of the onshore supervision of financing activities and cash balances”, the Company did not pay the principal and interest on the remaining 2022 II Notes falling due on 23 January 2022 and expects that it will not pay the principal and interest on the remaining 2022 Notes on their maturity date on 25 January 2022.

As of the date of submission, the principal due on the outstanding Senior Notes remain unpaid and the Reference Entity has on 31 January 2022, commenced an exchange offer for the outstanding Senior Notes (being outstanding principal amount of US$104,857,000). Under the Senior Notes, no grace period applies with respect to the payment of principal. The default status of the Senior Notes can be viewed on Bloomberg and can be publicly accessed by any subscriber by running the function “AW7117269 Corp” and “AM2026798 Corp”. The relevant default corporate action information can be viewed by running the function “CACX 229163194” and “CACX 229163151”.

Announcement of Reference Entity in relation to payment default
Announcement of Reference Entity in relation to commencement of exchange offer with respect to remaining Senior Notes
Announcement of Reference Entity with respect to change of name
Link to copy of the publicly available Offering Circular for 2022 Notes
Link to copy of the publicly available Offering Circular for 2022 II Notes

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Additional Information

Issue Number:

2022021601

Submitted by:

General Interest Question

Category:

Credit Event

Coverage Election:

2014 Definitions

Status:

Closed

Outcome:

Question Decided
Procedural History
- Closed
  
  3/01/2022 06:20am EST
- Ongoing
  
  DC Decision
  Asia Ex-Japan DC Meeting Statement
  As the Relevant Transaction 300/5 Criteria were not satisfied in respect of 2014 Transactions in respect of Yuzhou Group Holdings Company Limited (the Reference Entity), the Asia Ex-Japan DC met on Monday 28 February 2022 to discuss whether or not an Auction should be held to settle 2014 Transactions in respect of the Reference Entity.
  The Asia Ex-Japan DC determined that no Auction will be held to settle 2014 Transactions relating to the Reference Entity and accordingly no Transaction Auction Settlement Terms will be published. 1 March 2022 (being the date the decision was announced by the DC Secretary) is the “No Auction Announcement Date” for the purposes of Section 6.11 of the 2014 Definitions.
  In relation to Physical Settlement, under Section 8.10(b)(i) of the 2014 Definitions for Standard Asia Corporate Transactions in respect of the Reference Entity, the NOPS Cut-off Date is 31 March 2022.
  3/01/2022 06:20am EST
- Ongoing
  
  DC Decision
  Asia Ex-Japan DC Meeting Statement – 24 February 2022
  The Asia Ex-Japan DC met on Tuesday 22 February 2022 to discuss whether a Failure to Pay Credit Event had occurred with respect to Yuzhou Group Holdings Company Limited (the Reference Entity) due to the non-payment of the Reference Entity’s obligations under its directly-issued 8.625% Senior Notes due 23 January 2022 (the 2022 II Notes).
  The Asia Ex-Japan DC considered the Publicly Available Information submitted by the Eligible Market Participant that raised the DC Question. Based on the information provided, the Asia Ex-Japan DC determined that: (i) the 2022 II Notes constituted an Obligation of the Reference Entity; (ii) the Reference Entity had failed to make payments in respect of such Obligation in excess of the Payment Requirement; and (iii) that the applicable Grace Period had expired.
  The Asia Ex-Japan DC also considered the 2019 Narrowly Tailored Credit Event Supplement to the 2014 Credit Derivatives Definitions and concluded that there was sufficient Eligible Information to determine that the Credit Deterioration Requirement was satisfied.
  Accordingly, the Asia Ex-Japan DC concluded that a Failure to Pay Credit Event had occurred with respect to the Reference Entity and the date of the Failure to Pay Credit Event was 27 January 2022.
  The Asia Ex-Japan DC noted that the Eligible Market Participant had also asked whether a Failure to Pay Credit Event had occurred in respect of the non-payment of the Reference Entity’s obligations under its directly-issued 6.00% Senior Notes due 25 January 2022 (the 2022 Notes). As the maturity date of the 2022 II Notes was earlier than the 2022 Notes, it was not necessary to consider further the non-payment under the 2022 Notes.
  The Asia Ex-Japan DC will meet again on Monday 28 February 2022 to discuss whether to hold an Auction.
  
  2/24/2022 06:05am EST
- Request Accepted by DC
  
  2/18/2022 07:25am EST
- Pending DC Consent
  
  2/16/2022 10:00am EST