Kirkland Advises Ad Hoc Committee of Bondholders on the Successful Restructuring and Settlement of Tsinghua Unigroup’s US$449.2 Million Keepwell-Backed Bonds

Kirkland & Ellis represented an ad hoc committee of bondholders on the successful restructuring and settlement of US$449.2 million bonds issued by Unigroup International Holdings Ltd. (in liquidation) and guaranteed by Tsinghua Unigroup International Co., Ltd. (in liquidation), supported by a keepwell deed provided by Tsinghua Unigroup Co., Ltd. (TUC).

The restructuring, which became effective on 27 February 2026, was implemented via a consent solicitation and involved a full redemption and cancellation of the bonds in exchange for a cash payment equal to 66% of the outstanding principal amount, plus a consent fee of 2% to consenting holders.

Kirkland played a pivotal role in this outcome, having represented the ad hoc committee in instructing the bond trustee to secure a landmark favorable judgment against TUC in June 2023 for over US$483 million (inclusive of the principal amount of the bonds, accrued interest and costs) from the High Court of Hong Kong in HCA 1269 of 2021. This ruling established a crucial precedent for bondholder recoveries involving keepwell structures and paved the way for the successful restructuring negotiations with TUC. For details on this judgment, please see our publication on 16 June 2023 here.

The Kirkland team included restructuring lawyer Neil McDonald; and litigation lawyers Amy Ngan and Simon Shiu.