According to Zhitong Finance App, Zhengshang Industrial (00185) announced that in September 2021, the company issued 12.50% senior notes (ISIN: XS2385313064; debt securities code: 40859) (2024 notes) due on April 23, 2024 and listed them on the Stock Exchange. At the date of this announcement, the outstanding principal amount of the 2024 notes was US$160 million. According to the terms of the 2024 notes, the company must redeem all outstanding 2024 notes along with accrued and unpaid interest on April 23, 2024.
Due to the liquidity pressure the company is currently facing, the company does not expect to pay off the principal amount of the 2024 notes along with accrued and unpaid interest due on April 23, 2024. According to the terms of the 2024 note, failure to pay the 2024 note would constitute a breach of contract.
In September 2023, the company issued 7.0% senior notes (ISIN: XS2674525477; debt securities code: 5862) (2025 notes) due on September 12, 2025 and listed them on the Stock Exchange. At the date of this announcement, the outstanding principal amount of the 2025 notes was US$103 million. According to the terms of the 2025 note, failure to pay the 2024 note will trigger a cross default on the 2025 note.
As the 2024 notes expire on April 23, 2024, the 2024 notes will be delisted from the Stock Exchange upon maturity.