China SCE Begins Search for Financial Advisor for Potential Offshore Restructuring Following Event of Default on USD Bonds

Hong Kong-listed developer China SCE Group has told investors it has begun searching for a financial advisor with a view to assist it on a potential holistic restructuring for its offshore debt, after failing in September to roll over an offshore syndicated loan, three sources familiar with the matter said. China SCE said in an Oct. 4 announcement that it had missed payment on $61 million of principal and interest due under a syndicated loan agreement entered into on March 22, 2021. The non-payment on the loan has resulted in an event of default under the company’s offshore USD notes, the company’s announcement said, and trading in all four of its offshore notes, totaling $1.8 billion, has been suspended, as reported. The dual-tranche 3.5-year amortizing loan, comprising originally HKD 351 million ($44.9 million) and $342.5 million tranches, is set to mature on Sept. 22, 2024. China SCE had thought to roll the current facility into a new term loan, and all existing lenders had agreed the deal in principle last month, said the sources. The lenders for the due 2024 facility – with China SCE as borrower and certain of its subsidiaries as guarantors – include mandated lead arrangers and[...]