Logan Group Company Limited

Event Publicly Available Information:

Has a Failure to Pay Credit Event occurred with respect to Logan Group Company Limited?

The Eligible Market Participant that raised the DC Question requested that the DC consider whether a Failure to Pay Credit Event has occurred in respect of Logan Group Company Limited.

In support of its question, the Eligible Market Participant provided instructions to access a USD200,000,000 Facility Agreement dated 10 March 2020 between Perfect Odyssey Limited as Borrower, the Reference Entity as Guarantor and Citicorp International Limited as Agent and associated notices relating to the relevant payment obligation, which it noted were publicly available by searching on a Bloomberg terminal for a loan entered into by "Perfect Odyssey" and selecting "BL387120 Corp" or "BF387118 Corp" from that entity’s list of securities, and from there proceeding to its company filings.

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Additional Information

Issue Number:

2022031801

Submitted by:

Citibank, N.A.

Category:

Credit Event

Coverage Election:

2014 Definitions

Status:

Closed

Outcome:

Question Decided
Procedural History
- Closed
  
  DC Decision
  Asia Ex-Japan DC Statement – 4 April 2022
  As the Relevant Transaction 300/5 Criteria were not satisfied in respect of 2014 Transactions in respect of Logan Group Company Limited (the Reference Entity), the Asia Ex-Japan DC determined whether or not an Auction should be held to settle 2014 Transactions in respect of the Reference Entity.
  The Asia Ex-Japan DC determined that no Auction will be held to settle 2014 Transactions relating to the Reference Entity and accordingly no Transaction Auction Settlement Terms will be published. 4 April 2022 (being the date the decision was announced by the DC Secretary) is the “No Auction Announcement Date” for the purposes of Section 6.11 of the 2014 Definitions.
  In relation to Physical Settlement for Standard Asia Corporate Transactions in respect of the Reference Entity, the NOPS Cut-off Date can be calculated in accordance with Section 8.10(b)(i) and Section 1.53 of the 2014 Definitions.
  4/04/2022 05:45am EDT
- Ongoing
  
  DC Decision
  Asia Ex-Japan DC Meeting Statement – 29 March 2022
  The Asia Ex-Japan DC met on Monday 28 March 2022 to discuss whether a Failure to Pay Credit Event had occurred with respect to Logan Group Company Limited (the Reference Entity) due to the non-payment of the Reference Entity’s guarantee obligations in respect of the USD 200,000,000 Facility Agreement dated 10 March 2020 entered into by Perfect Odyssey Limited as Borrower (the Borrower), the Reference Entity as Guarantor (previously named Logan Property Holdings Company Limited) and Citicorp International Limited as Agent (the Facility).
  The Asia Ex-Japan DC considered the Publicly Available Information submitted by the Eligible Market Participant that raised the DC Question. The information provided indicated that the demand under the guarantee given by the Reference Entity in respect of the Facility had been delivered and was effective on Monday 14 March 2022 and that payment remained outstanding as of Friday 25 March 2022. The Asia Ex-Japan DC determined that: (i) the guarantee given by the Reference Entity under the Facility constituted an Obligation of the Reference Entity; and (ii) the Reference Entity had failed to make payments in respect of such Obligation in accordance with its obligations under the Facility in excess of the Payment Requirement. The Asia Ex-Japan DC also considered the 2019 Narrowly Tailored Credit Event Supplement to the 2014 Credit Derivatives Definitions and concluded that there was sufficient Eligible Information to determine that the Credit Deterioration Requirement was satisfied.
  The Asia Ex-Japan DC noted that a Failure to Pay Credit Event for the purposes of the 2014 Definitions can only occur following the expiry of the relevant grace period. The relevant grace period is any relevant grace period under the relevant Obligation, where factually applicable, or a deemed grace period per the 2014 Definitions.
  The Asia Ex-Japan DC noted that the terms of the Facility apply a grace period for the failure to pay Event of Default if such failure to pay is caused by: (i) administrative or technical error; or (ii) a disruption event; and such payment is made within five business days. According to the notices from the Agent submitted as Publicly Available Information, there had been no communication by either the Borrower or the Reference Entity as of 25 March 2022 suggesting these circumstances apply. The Asia Ex-Japan DC also considered that the continuing non-payment may also be indicative that such non-payment was not originally caused by an administrative or technical error or a disruption event. As such, the Asia Ex-Japan DC determined that on the basis of the information available, the grace period under the Facility did not apply, and therefore the deemed Grace Period under Section 1.46(c) of the 2014 Definitions applied. Following the non-payment by the Reference Entity on 14 March 2022, the Grace Period therefore expired immediately prior to midnight on 17 March 2022.
  Accordingly, the Asia Ex-Japan DC concluded that a Failure to Pay Credit Event had occurred with respect to the Reference Entity and the date of the Failure to Pay Credit Event was 17 March 2022.
  The Asia Ex-Japan DC will meet again in due course to discuss settlement of Credit Derivative Transactions referencing the Reference Entity.
  3/29/2022 05:10pm EDT
- Ongoing
  
  The AEJ DC met today to commence discussions in relation to the DC Question and agreed to meet again on Monday 28 March.
  3/24/2022 08:30am EDT
- Request Accepted by DC
  
  3/21/2022 05:50pm EDT