Core Viewpoint - CIFI Holdings Group (00884) announced a restructuring plan aimed at canceling existing debts and relieving all current debt obligations, allowing creditors to choose from multiple options to meet their preferences and needs, while establishing a sustainable capital structure verified by the company's financial model [1][2]. Debt Restructuring - Approximately $8.1 billion in existing debt, including $6.8 billion in principal and $1.3 billion in accrued interest, will be canceled, and new instruments totaling approximately $6.7 billion will be issued, along with about $950,000 in cash payments [2]. - The restructuring is expected to reduce the company's offshore debt by approximately $1.4 billion on the effective date [2]. - The new instruments will include approximately $4.1 billion in mandatory convertible bonds, which will further reduce offshore debt as they convert into shares [2]. Mandatory Convertible Bonds - The mandatory convertible bonds will have an initial conversion price of HKD 1.6 per share, representing a premium of approximately 392.3% over the last trading price of HKD 0.325 on September 26, 2024 [3]. - The maximum number of shares to be issued upon conversion at the initial price is approximately 19.866 billion shares, while at the trigger conversion price of HKD 5.0, the maximum number of shares is approximately 6.357 billion [3]. Related Party Transactions - Related party Maofu, as a creditor, will receive mandatory convertible bonds worth approximately $2.939 million, convertible into about 14.3277 million shares [4]. - Another related party, Rain-Mountain, will receive mandatory convertible bonds worth approximately $1.0824 million, convertible into about 5.2767 million shares [6]. Shareholder Loan Conversion - A shareholder loan agreement will allow the conversion of outstanding loans into shares at a conversion price of HKD 0.40, resulting in the issuance of approximately 1.315 billion shares upon full conversion [7]. Share Award Plan - The board proposed a share award plan to align the interests of eligible participants with the company's goals, encouraging significant contributions to the business post-restructuring [8]. - A total of 2.441 billion awards will be granted to selected participants, pending shareholder approval at a special meeting [9]. Increase in Authorized Share Capital - The board proposed to increase the authorized share capital from HKD 2 billion (200 billion shares) to HKD 5 billion (500 billion shares) to provide greater flexibility for future fundraising and business development [10].
旭辉控股集团发布就重组可能进行的交易