Tsinghua Unigroup has completed a year-long debt restructuring since its court-ordered restructuring in July 2021. Beijing Zhiguangxin Holding, which was formed last year by lead investor Wise Road Capital, and its sister fund JAC Capital have fully taken over Unigroup’s equity from Tsinghua Holdings. Creditors of Unigroup will start receiving cash payments from Wednesday with creditors being paid 95-100% of the amounts they are owed. As per the repayment plan, there would be a cash outflow of RMB 60bn ($8.94bn) and several debt-to-equity swaps. Tsinghua Unigroup had faced depleting cash flows and repayment issues on its local and offshore bonds that ultimately led to its default on onshore and offshore bonds in November and December 2020. The company was once seen as a major player in China’s push for semiconductor self-reliance when US-China relations were stressed.
Tsinghua Unigroup’s dollar bonds are trading at around 60 cents on the dollar.
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