Hogan Lovells advises Ad Hoc Group on restructuring of Yestar Notes

Hogan Lovells advises Ad Hoc Group on restructuring of Yestar Notes

Press releases | 10 January 2022

Hong Kong, 10 January 2022 - Global law firm Hogan Lovells has successfully advised an ad hoc committee of bondholders (the “Committee”) on the restructuring of US$200m 6.9% senior notes due 2021 (the “Notes”) issued by Yestar Healthcare Holdings Company Limited (2393.HK) (“Yestar”). Yestar is a leading medical consumables and equipment company operating in the PRC.

On 30 December 2021, Yestar completed a restructuring of the Notes by way of a scheme of arrangement in the Cayman Islands.

Hogan Lovells played a key role in the formulation and improvement of the restructuring terms which were subsequently supported by 94% of the noteholders who acceded to a restructuring support agreement and more than 95% of noteholders who attended and voted in favour of the scheme. The scheme was approved by the Cayman court on 10 December 2021 and the Restructuring Effective Date occurred on 30 December 2021.

Hogan Lovells worked seamlessly alongside Houlihan Lokey, the financial adviser to the Committee and Cayman Islands’ counsel, Mourant Ozannes. A team of professionals from Hong Kong, Shanghai, Cayman Islands and the U.S., ultimately achieved a successful outcome for both the noteholders and the issuer.

The Hogan Lovells team was led by Hong Kong based Corporate & Finance partner, Jonathan Leitch with support from lawyers Derrick Lau, Jenny Yim, Andrew Cobden and Teresa Kwok in Hong Kong and Shantay Cong in Shanghai. Capital Markets partner Richard Aftanas and associate Katherine Tyurin in New York provided US law advice.

“We are pleased to advise the ad hoc committee in successfully navigating a path out of the turbulence caused by the COVID-19 pandemic” said Mr Leitch. “Our involvement for the ad hoc committee attests to our experience and capabilities in acting as trusted legal counsel to sophisticated investors on their complex, cross border financial restructuring transactions in Asia”.