Some global investors are urging Chinese private education giant XJ International Holdings to redeem half of its $350 million in bonds before maturity, as the creditors fear the Hong Kong-listed firm may intentionally default on repayments, reports Caixin.
The bonds are due in 2026, but the creditors asked for the early redemption to be completed by March 2 in a letter sent to the Chinese company last month by their legal adviser, Chicago-headquartered global law firm Kirkland & Ellis LLP.
The creditors are a group of large international investors who collectively hold no less than $154 million, or about 50%, of the bonds’ outstanding principal amount, according to the letter seen by Caixin. Under “the terms and conditions of the Bonds,” each bondholder may require the issuer to fulfill its “Put Option Obligation” to redeem all or part of their holdings at 103.04% by March 2, the letter said.