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Admiralty Harbour is a credit-focused financial services firm based in Hong Kong.
Admiralty Harbour Completes Debt Restructuring for Hidili
Apr 2023
On March 31, 2023, Hidili Industry International Development Limited (1393.HK) successfully completed the restructuring of its US$183 million 8.625% bonds due in 2015 by way of a scheme of arrangement in Hong Kong.  Admiralty Harbour acted as the company’s financial advisor and assisted the company in successfully completing the transaction.

In 2015, due to contracted demand and overcapacity in the domestic coal industry, the company’s profitability was severely affected, resulting in a default on its onshore and offshore debts.  After six years of constant efforts, the restructuring terms were launched in July 2020.  The transaction boldly and innovatively addressed onshore and offshore debt issues in parallel by setting the completion of onshore restructuring as a prerequisite for offshore restructuring.  The restructuring eventually released the company from its default state by converting existing debts into shares of the listed company.

The scheme secured support from an overwhelming majority of creditors at the scheme meeting and was subsequently sanctioned by the Hong Kong High Court.  The scheme also obtained Chapter 15 recognition before the United States Bankruptcy Court.  The cross-border recognition maximized the effectiveness of the restructuring under different jurisdictions.

Admiralty Harbour has been engaging with the company over the past six years to overcome continued industrial downturns and limited liquidity, to solve difficulties in implementing the transaction, and to defend against liquidation actions onshore and offshore.  The transaction is another showcase of Admiralty Harbour’s professional capability and restructuring experience.  Both the company’s and creditors’ interests were retained through this transaction.
 
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