Landsea Management (00106.HK) announced that the outstanding principal amount of the 10.75 basis points senior notes due this year is approximately 94.4584 million US dollars. The company is currently soliciting eligible note holders' consent to amend and agree to certain terms of a proposed waiver agreement.

The company stated that the main purposes of soliciting consent and proposing amendments and waivers are to extend the maturity of its debt, strengthen its balance sheet, and enhance cash flow management.

Due to the deteriorating operating environment affecting China's real estate industry, the company's liquidity and cash flow have been tight and are expected to continue to be tight. The company has not paid the interest due on the notes maturing on April 20 this year, failed to redeem the minimum principal payment required by the mandatory redemption date of April 20, and is not expected to repay all the remaining outstanding principal and accumulated unpaid interest on the original maturity date of October 20, all of which constitute default events under the contract. In addition, the 10.75% senior notes due in 2022 matured on October 21, 2022, at which time the full principal and all accumulated unpaid interest were due. As of now, the company has not paid these amounts, constituting a default event under the note agreement.

These default events may trigger default events under other debt obligations, potentially resulting in the company's inability to fulfill payment obligations under outstanding debt and may further have a significant adverse impact on the group's business, operations, and financial condition, including the possibility of bankruptcy or other forms of restructuring. Such developments may have adverse effects on holders, including those who have not consented to the proposed amendments and waivers.