Linklaters advises on convertible bonds restructurings in the education sector in China

Linklaters acted as the international legal advisor to the ad hoc groups of bondholders on the restructurings of China YuHua Education Corporation Limited’s (China YuHua) HK$2.088bn 0.9% convertible bonds due 2024 and China Maple Leaf Educational Systems Limited’s (China Maple) US$125m 2.25% convertible bonds due 2026.

In response to challenges faced by the education industry generally, China YuHua and China Maple have received support from their bondholders on the restructuring proposals and have successfully obtained the consent of their respective bondholders for certain amendments to their respective convertible bonds.

Linklaters assisted in the negotiation and drafting of all consent solicitation and bond restructuring documents as well as the announcements and investor communications, leveraging on the firm’s expertise in the equity-linked capital markets, restructuring & insolvency and disputes resolution practices.

The transactions were led by Linklaters’ cross-practice team comprising capital markets partners Taiki Ki and Sherry Cui, restructuring partner James Warboys and disputes resolution partner Denise Fung, with support from managing associate Leeza Lee.