LVGEM (China) unit launched consent solicitation process after notes matured

LVGEM (China) Real Estate Investment (0095) said its subsidiary launched a consent solicitation process with noteholders after failing to redeem three notes that matured last month. 

The notes issued by Gemstones and guaranteed by LVGEM carried an interest rate of 8 percent, according to a filing on Sunday. Their principal amount is US$5.28 million (HK$41.2 million), HK$114.47 million, and 40.5 million yuan (HK$43.5 million), respectively.

The developer’s unit aims to solicit requisite consent from a majority in favor consisting of not less than 90 percent of the outstanding principal amount of each note to approve the amendments of the maturity date, the governing law, and waive existing defaults or any consequential defaults in accordance with the terms and conditions of the notes, the filing said.