China Oceanwide Holdings in a filing with the HKEX said that Oceanwide Holdings International Development III Co., Ltd (OHID III), wholly-owned subsidiary of China Oceanwide Group Limited repurchased $146.045mn worth of its $280mn 14.5% 2021s. Due to the pandemic, OHID III is facing temporary cash flow issues and they plan to repay the principal and the accrued and unpaid interest of the Remaining OHID III Notes, which were originally due on May 23, in full by August 23, 2021. They said that a triggering event occurred for a wholly-owned subsidiary with an outstanding principal of ~$160mn. Due to the triggering event, the majority holders of the 14.5% 2021s may demand immediate payment of the outstanding notes, accrued interests and all other amounts related to it. Due to this, the company is trying to get a waiver on the triggering event but has not received any notice yet.
Oceanwide’s 12% bonds due October 2021 were down 21 points yesterday to 62 cents on the dollar.