Chinese Developer Logan Group has halted coupon payments on five of its dollar-denominated bonds maturing over the next 6 years with a combined value of $1.6bn. The bonds in question are its $400mn 6.5% 2023s, $300mn 5.75% 2025s, $300mn 4.25% 2025s, $300mn 4.7% 2026s and $300mn 4.5% 2028s. In a filing with the HKEX on Tuesday, Logan said that the suspension was to “facilitate a liability management solution and treat all creditors fairly”. A source from IFR speculates that the company did so in order to buy more time to work out its restructuring plan. Chairman Kei Hoi Pang said in the filling, “The company looks forward to having a constructive dialogue with and seeks the support and cooperation from all its creditors to stabilise its operations, unleash the value of its assets, and to attain a more stable capital structure that is crucial to the business and operations of the group.” The group currently has a $6.6bn debt load and was downgraded earlier this year to Caa2 and CCC by Moody’s and Fitch respectively.
All of Logan’s bonds have mostly fallen and are currently trading at levels of ~9-11 cents to the dollar, with its 6.5% 2023s down 1.02 points to currently trade at 9 cents.
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