XJ International (HKG:1765) called a meeting of bondholders to seek approval for a restructuring of its previously issued debt, according to a Hong Kong bourse filing Thursday.
The education services firm is looking to add an early redemption option to the $271.1 million worth of zero-coupon convertible bonds due 2026, as well as consent from bondholders to waive any defaults, breaches, or other claims, and demand for early repayment or conversion requests.
The company agreed to pay a consent fee of 1% to bondholders who vote in favor of the proposal.
XJ International said the amendments were meant to address its near-term liquidity challenges and to help the firm proactively manage its debt repayment schedule with expected cash flows.
The company warned that if the proposals failed, it may not be able to redeem the debt at the previously agreed rate of 105.11% of face value upon maturity in March 2026.
A meeting of bondholders is expected to be held on July 25 to deliberate on the proposal, and the changes are expected to come into effect on July 30, if approved.
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