(Bloomberg) -- Chinese technology park operator Tus-Holdings Co. has called off its offshore debt restructuring plan, saying it is unable to pay creditors by a Monday deadline given the absence of regulatory approval.
Tus-Holdings, once owned by China’s prestigious Tsinghua University, was originally scheduled on Monday to deliver payments under its debt overhaul agreement, including a so-called consent fee that compensates creditors for accepting debt reorganization, as well as some principal payments.
The company submitted a filing to Chinese regulatory authorities on April 30 to review its restructuring proposal but didn’t receive any approval as of Monday, it said in a company filing seen by Bloomberg news.
A representative for Tus-Holdings didn’t immediately respond to queries from Bloomberg News.
The development marks a fresh setback for Tus-Holdings’ already protracted restructuring process, after it pushed back in July the settlement date of the debt overhaul deal by a month to Aug. 26. The latest twist also underscores the regulatory risks faced by overseas creditors of Chinese defaulters.
Tus-Holdings first defaulted on its dollar debt in 2021.
The company’s now aborted restructuring plan involves two dollar bonds with a combined value outstanding of about $900 million. The company’s earlier offer included raising upfront cash payment for maturity extensions and a higher price for outright partial repayment.
--With assistance from Dong Cao.
(Updates with details of company’s decision to drop debt plan)
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