R&F PROPERTIES plans to restructure its domestic corporate bonds

According to the Zhitong Finance APP, R&F PROPERTIES (02777) announced that in light of the overall operational status of the company, it plans to initially provide an overall domestic bond restructuring plan for domestic bondholders, including cash buybacks, asset swaps, accounts receivable trust shares for debt settlement, asset trust shares for debt settlement, stock economic benefit rights payment, and full debt retention with extended maturity. The specifics are as follows: (1) Cash Buyback: The company plans to repurchase the bonds at a discount in three phases (20% of the remaining face value per bond), with the total repurchase amount expected to not exceed RMB 600 million. (2) Asset Swap for Debt Settlement: The company intends to repay the bonds with physical assets, where each RMB 100 of remaining face value of the bond can register a debt settlement value of RMB 30 in physical assets. The total principal balance of the bonds intended for this asset swap does not exceed RMB 6.6 billion. (3) Accounts Receivable Trust Shares for Debt Settlement: The company plans to use RMB 300 million of accounts receivable from repurchase payments as the underlying asset to establish an accounts receivable trust, where each RMB 100 of remaining face value of the bond can register a value of RMB 30 in trust shares. The total principal balance of the bonds intended for this accounts receivable trust share debt settlement does not exceed RMB 1 billion. (4) Asset Trust Shares for Debt Settlement: The company intends to use the economic rights of physical assets as the underlying asset for the asset trust, establishing a service-type trust, where each RMB 100 of remaining face value of the bond can register a value of RMB 35 in asset trust shares. The total principal balance of the bonds intended for this asset trust share debt settlement does not exceed RMB 5.7 billion. (5) Stock Economic Benefit Rights Payment: The company plans to issue no more than 200 million shares of stock directed to a special purpose trust in Hong Kong (the company may increase the aforementioned limit at its discretion) for the payment of stock economic benefit rights. The net amount of foreign currency funds obtained from the disposal of the newly issued shares will be used to repay the bondholders who received the stock options. (6) Full Debt Retention with Extended Maturity: If this domestic bond restructuring is smoothly advanced and approved by all bondholder meetings, the remaining principal of the domestic bonds after the completion of the above options will be fully extended to September 16, 2035. Starting from March 16, 2031, each bond will pay RMB 1 in principal in cash every six months, with the full remaining principal and interest paid on the final maturity date. The interest portion during the past and extended maturity period will be uniformly reduced to 1%, calculated as simple interest without compound interest. If the above bond restructuring plan is successfully advanced and completed, it will alleviate the company's short-term debt repayment pressure, reduce the company's debt ratio, optimize the debt structure, and improve the financial situation; at the same time, it will allow the company to focus more energy on its main business, stabilize operations, and enhance operational capabilities. The above bond restructuring plan is a preliminary proposal intended for advancement and has not yet been finalized, thus there is a certain degree of uncertainty. The company will promote the bond restructuring matters by holding bondholder meetings