Sidley Austin, Maples Group and Kirkland & Ellis assisted in the restructuring of Modern Land’s USD1.34 billion in overseas senior notes, paving the way for the cancellation of debt and the issuance of new notes.
The restructuring of Modern Land’s debt was implemented through a scheme of arrangement in the Cayman Islands, with parallel recognition under Chapter 15 of the US Bankruptcy Code.
Maples Group acted as Cayman Islands counsel to the real estate group Modern Land, led by Hong Kong partner, Nick Stern and Cayman Islands partner, Caroline Moran.
Sidley Austin advised Modern Land on Hong Kong and New York law, with partners Carrie Li, Mark Knight and Raymond Oh leading the team.
Partners Jifree Cader and Gordon Davidson, from the London and Hong Kong branches, respectively, and partner Anthony Grossi in the US office assisted on corporate restructuring.
Leonard Lou, a senior consultant in the Hong Kong and Beijing offices, assisted on capital markets matters, while partners Olivia Ngan and Desmond Ang advised on other issues.
Kirkland & Ellis assisted the bondholders committee, with restructuring partners Neil McDonald and Jacqueline Tang leading the team. Capital markets partner Louis Rabinowitz advised on debt capital matters.
The restructuring means Modern Land will eliminate USD1.5 billion in debt default from October 2021.
The bondholders agreed to restructure the outstanding principal of USD1.34 billion and all accrued and unpaid interest until the effective date of the restructuring. The restructuring consideration consists of a cash redemption of USD23 million and the issuance of new notes in five tranches to replace the existing notes.
The existing notes will be cancelled and the new notes will be listed on the Singapore Stock Exchange. Five notes in USD have been issued that will mature in 2023, 2025, 2026, and 2027.
Six months ago, Kirkland & Ellis handled a similar case when the firm helped bondholders complete the debt restructuring of another Hong Kong-listed real estate company in mainland China, Golden Wheel Tiandi.
Read related stories
Sidley Austin, Appleby advise on China Fortune’s debt restructuring
Sidley Austin and Appleby assisted China Fortune Land Development (CFLD) to complete a USD4.96 billion offshore debt restructuring, the largest of its kind in China
Sidley Austin, Kirkland and Harneys advise on Evergrande’s debt restructuring
Sidley Austin, Kirkland & Ellis and Harneys advised parties on preliminary proposals for the restructuring
R&F strikes the biggest Asian real estate debt restructuring
Sidley Austin has helped Guangzhou R&F Properties to complete a USD4.9 billion debt restructuring
For more stories about Sidley Austin, visit law.asia.
