One of China’s largest private education operators, XJ International, formerly Hope Education Group, is facing a winding up petition brought by international bondholders after it failed to meet a repayment deadline earlier this month.
The Bank of New York Mellon London branch, acting for a group of creditors, filed a petition with the High Court in Hong Kong on Wednesday to liquidate XJ and seeking payment of US$324 million of convertible bonds and US$27,056 of interest, the education company said in a stock exchange filing late on Thursday night.
Bank of New York is the trustee for the defaulted bonds and is taking legal action under the instructions of a group of international bondholders who own 49. 1 per cent of the offshore convertible bonds issued by the Chengdu-headquartered company.
“The ad hoc group was left with no choice but to pursue this course of action by the company’s failure to enter into substantive discussions…
