CIFI Holdings clarified that its business was in good condition and that it has sufficient and available cash reserves while financial institutions continue to support the company, according to a statement to HKEX. This comes after CIFI called out that there were “unfair negative and groundless statements/comments on the company’s onshore and offshore financing on analysis reports/social media”. CIFI’s dollar bonds rallied sharply from 10-19 points on the update. Its 6.45% 2024s were up 19 points to 60.28 cents on the dollar.
Redco Properties has launched a consent solicitation and tender offer to purchase some of its dollar bonds. The consent solicitation is to amend the events of default provisions for its USD 9.9% 2024s and its local RMB-denominated 10.5% 2023s. The consent fee provided by Redco is $2.5 for each $1,000 of principal of the 2024s and RMB 25 for each RMB 10,000 of the 2023s.
As per IFR, the tender offer covers purchases of at least $177.276mn of its 8% April 2022s, $274.67mn of its 11% August 2022s. Bondholders may receive $10 per $1,000 in principal for the above two bonds, plus $1,000 in aggregate principal of new 8% March 2023s and 11% August 2023s. The offer also covers the purchase of at least $135mn of its 13% May 2023s where holders will receive $10 per $1,000 in principal plus $1,000 in aggregate principal of two new 13% March 2023 bond options and 13% August 2023s. The offers expire on March 21.
Separately, Yango Group failed to make coupon or principal payment in full on a local RMB 600mn ($94.5mn) bond due March 15, after its creditors rejected exemption proposals on two RMB bonds, according to a clearing house filing. Yango’s dollar bonds are at distressed levels of 6-8 cents on the dollar.