Kirkland & Ellis advised the ad hoc committee of noteholders (comprising international institutions and funds) in a successful restructuring of the New York-law governed $275 million senior notes issued by Hong Seng Limited and guaranteed by Hong Yang Group Company Limited (the “Company”), the controlling shareholder of Hong Kong-listed companies Redsun Properties Group Limited (HKSE: 1996) and Redsun Services Group Limited (HKSE: 1971). The Restructuring Effective Date occurred on August 19, 2024.
Like many of its industry peers, the Redsun group of companies has been negatively impacted by the ongoing debt crisis in the Chinese real estate sector since mid-2021. After almost two years of negotiations with the Company and various stakeholders, together with multiple disputes in winding-up proceedings in Hong Kong and other forums, the restructuring was implemented consensually by way of a scheme of arrangement in the British Virgin Islands.
The Kirkland team was led by restructuring partners Neil McDonald and Wei-Yang Lim and associates Mavis Sun and Zhao Wang Teo, and included debt finance partner Jacqueline Zheng and associate Varian Koh; litigation partner Fergus Saurin and associate Kevin Leung; capital markets partners Cedric Van den Borren and Michael Taufner and associate Serguei Chevtchenko; and restructuring partner Anthony Wijaya.
