SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Fosun’s retail unit Shanghai Yuyuan Tourist Mart Group is setting up a $6.4bn company that would invest in airlines. The retail company would spend ~$1.6bn to establish the new company Yuyuan Aviation Industry Limited Partnership with the rest of the capital contributed by unnamed partners. While the new company did not say it would invest in Hainan Airlines, “the announcement fueled expectations that Yuyuan, or its parent Fosun, would be interested in buying Hainan Airlines’ assets,” said Ivan Li, fund manager at Loyal Wealth Management. Hainan Airlines, owned by HNA Group, reported a near $10bn loss for 2020 and a recent 1Q2021 loss of ~$400mn, and is in need of capital to avoid liquidation.

Fosun’s bonds were stable – its 5.05% 2027s were at 100.5, yielding 4.95%

For the full story, click here

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