Linklaters advised TusHoldings on its bondholder consent solicitation and bond restructuring
Linklaters acted as the international legal advisor for Tus-Holdings Co., Ltd. (TusHoldings) in obtaining consent from its bondholders to extend two tranches of offshore US dollar bonds totalling US$950m, and successfully completing the bond restructuring within one month.
The firm assisted TusHoldings in the negotiation and drafting of all consent solicitation, bond restructuring documents and announcements. This includes onshore and offshore credit enhancement measures, cash compensation plans, repayment plans and extensions, all within 10 days of being appointed. TusHoldings received consent from almost 100% of its investors on this plan. The level of complexity of this deal is rarely seen in the market, and Linklaters was involved in the planning and negotiating of all key aspects of the restructuring process, including communication and negotiation with investors.
The transaction was led by Linklaters’ Asia Managing Partner, William Liu, capital markets partner, Sherry Cui and restructuring and insolvency partner, Andrew Payne, with support from counsel Karen Cheng and managing associates Diantha Ho and Min Fang.
Asia Managing Partner, William Liu commented:
“Bond crisis management and restructuring is a critical stage for a company and a key foundation for its future stability and sustainability. Under the current complex economic conditions, assisting a company in developing and executing a balanced and comprehensive debt restructuring plan in an efficient way requires the extremely high level of professionalism and capability our legal team can offer. Congratulations to TusHoldings on the successful completion of this bond extension and restructuring.”
Capital markets partner, Sherry Cui commented:
“Linklaters is committed to supporting our clients' business development, and we are grateful for the trust TusHoldings’ placed in us to navigate the challenges at this critical time. Our experienced team was able to meet the client’s expectations, assisting them in overcoming setbacks to successfully complete this high-profile offshore bond restructuring project in just one month.”
Restructuring and insolvency partner, Andrew Payne commented:
“We are glad to have supported TusHoldings in formulating their strategy and securing a successful outcome. Linklaters' restructuring and insolvency practice is highly regarded in the market and our involvement in this extremely complicated bond restructuring demonstrates once again Linklaters’ expertise in handling complex debt crises.”
Founded in July 2000, TusHoldings is a large-scale comprehensive enterprise established by Tsinghua University. It is the development, construction and operation management entity of Tsinghua University Science Park (TusPark) in Beijing and one of the first national model entities of modern services. TusHoldings has participatory or controlling interests in more than 800 listed and unlisted companies. The assets under its management are worth approximately RMB200bn.
