(Infocast News) CHINA SCE GROUP (01966) announced that the Group has repaid total principal and interest of approximately US$1.56 billion under its offshore debts.
Entering the second quarter of 2023, the Group’s sales declined continuously, and its liquidity position became increasingly tight and the pressure to pay off its offshore debts continued to increase. Despite the Group’s best efforts, the Group’s liquid cash and bank deposits may not be sufficient to meet its current and future obligations. The Company has not made payment on an instalment of principal and interest amounting to approximately US$61 million which has fallen due under its syndicated loan agreement entered into on 22 March 2021.
The loan non-payment has resulted in an event of default under the Company’s Offshore USD Senior Notes. The loan non-payment may result in demands for acceleration of repayment of debts and/or actions taken by the Group’s creditors in
accordance with the respective terms of the relevant financings. The Group has not received any acceleration demand notice for repayment of debts from offshore creditors. In view of the challenges currently faced by the Group, the Company is of the view that a holistic solution to the overall indebtedness should be
explored immediately to ensure the long-term development of the Group and to protect the interests of all stakeholders of the Group.
In the face of the sector’s difficulties, the Group will focus its resources on ensuring the completion and delivery of pre-sold properties, and will make timely adjustments to its sales strategies to expedite the pre-sale and sale of properties, in order to stabilise its business operations and protect the interests of homebuyers, the Group’s partners and all stakeholders.
The Company will appoint external advisers as soon as possible to assist the Group in evaluating the current capital structure and liquidity and to explore feasible and holistic solutions to ensure the long-term development of the Group and to protect the interests of all stakeholders. The Company plans to actively communicate with offshore creditors to garner their support and understanding with a view to achieve an amicable resolution on the issues under its debts. (WL)