China Ecotourism Group (HKG:1371) is proposing to the relevant bondholders to exchange HK$154.2 million of certain outstanding existing bonds for new unlisted bonds, a Friday Hong Kong bourse filing said.

The exchange of the existing bonds, which comprise 7.5% unsecured convertible bonds issued in 2017, will take place on a dollar-by-dollar basis.

The new bonds worth up to about HK$195.4 million will carry a 7% per annum interest rate and fall due July 10.

Subject to the passing of the extraordinary resolution, it is expected the older bonds will be cancelled and new bonds issued on July 9.

The bond exchange proposal aims to save time and costs related to the implementation of the lottery system company's proposed debt restructuring involving a scheme of arrangement.