CHINASOUTHCITY (01668) releases debt restructuring timetable, must resume trading and maintain listing status by February 10, 2027.

CHINASOUTHCITY (01668) announced that the company has signed confidentiality agreements with several major creditors and shareholders to progress key terms of negotiations for a comprehensive debt restructuring. The discussions are ongoing. In order for the debt restructuring to be successful, the liquidator believes that the company must maintain its listing status. The company must take remedial action on the matters that led to the suspension of trading, comply with the resumption guidelines, and fully adhere to the listing rules until approval is received from the Stock Exchange. If the company does not resume trading of its shares within 18 months from the date of suspension, the Stock Exchange may cancel the company's listing status. The deadline for this 18-month period is February 10, 2027. Due to the approaching deadline of the resumption guidelines, time is of the essence, and the liquidator must promptly determine if there is sufficient support from creditors and shareholders to advance the debt restructuring. To comply with the deadline of the resumption guidelines, the liquidator has proposed a timetable for the comprehensive debt restructuring as follows: The proposed timetable for the comprehensive debt restructuring is subject to various factors, including: (a) The liquidator anticipates that debt repayment arrangements need to be proposed in accordance with Section 670 of the Companies Ordinance (Chapter 622) before implementing the comprehensive debt restructuring; (b) It is estimated that the preparation, initiation, and completion of the plan will take at least six to nine months; (c) Before utilizing the company's limited resources for the preparation and implementation of the plan, the liquidator must assess whether there is sufficient support from creditors and shareholders to advance the debt restructuring. In evaluating the feasibility of the comprehensive debt restructuring, the liquidator will consider, among other factors, the number of creditors who have signed the restructuring support agreement and the amount of debt they hold, and will pay attention to the requirement that the plan must receive the support of at least 75% of the value of the creditors attending and voting (whether in person or by proxy) at meetings of each class of creditors bound by the plan, in accordance with Section 674 of the Companies Ordinance (Chapter 622), in order to obtain court approval and effect; and (d) The liquidator anticipates that if the company's listing status is canceled, the willingness of creditors and shareholders to support the comprehensive debt restructuring will significantly decrease, and if the debt restructuring is not completed before the deadline of the resumption guidelines, the restructuring plan will no longer be feasible. Therefore, the company encourages creditors and shareholders to continue actively discussing and/or proposing suggestions with the liquidator regarding the comprehensive debt restructuring. As indicated in the proposed timetable and important work items, the liquidator hopes to receive any opinions and/or suggestions from creditors or shareholders as soon as possible and welcomes you to contact the liquidator via email at ProjectCompassFTI@fticonsulting.com.