China’s Tsinghua Unigroup has seen a consortium led by strategic investors win a bid to lead its $9.4bn debt restructuring. Government-backed Beijing Jianguang Asset Management Co. Ltd.(JAC Capital) and Wise Road Capital Ltd  were the winning bidders.  Tsinghua Unigroup will now proceed with its bankruptcy process, arrange asset transfers and debt payments under court orders. Previously, Alibaba Group, which was competing with JAC Capital to purchase the company but Alibaba pulled out in December 2021. The chip maker was forced into restructuring under the Chinese bankruptcy law after it defaulted on its onshore and offshore bonds over the last two years.

Tsinghua Unigroup’s dollar bonds were trading flat its 6.5% 2028 at 67.25 and yielding 6.94%. However in since the beginning of April, its bonds have rallied over 10%.

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