Fang Holdings Limited (NYSE:SFUN) today announced that it has entered into settlement deeds (the “Settlement Deeds”) with China Index Holdings Limited (“CIH”) and the Company’s convertible notes holders, namely (1) Safari Group CB Holdings Limited, (2) IDG Ultimate Global Limited, (3) Quartz Fortune Limited, (4) Velda Power Limited, and (5) Fountain II Limited, in relation to the convertible notes issued by the Company in 2015 (the “Convertible Notes”), on (1) June 25, 2021, (2) August 20, 2021, (3) August 20, 2021, (4) August 20, 2021, and (5) September 22, 2021, respectively.
On November 13, 2020, a winding-up petition was presented to the Grand Court of the Cayman Islands against the Company by certain shareholders. As a result of the winding-up petition and pursuant to the terms of the Convertible Notes, the outstanding principal of, and accrued and unpaid interest on the Convertible Notes, which were originally due in 2022, became due and payable on December 13, 2020. CIH is liable for the payment obligations under the Convertible Notes pursuant to the guarantee provided by CIH to the Convertible Notes holders in connection with the CIH’s separation from Fang on June 11, 2019.
Pursuant to the Settlement Deeds, the Company and CIH will each bear half and together repay the Convertible Notes holders 50% of the outstanding principal under the Convertible Notes and accrued interest on September 30, 2021 and the remaining 50% and accrued interest on December 31, 2021, in full and final settlement of the Company’s indebtedness under the Convertible Notes. Accordingly, the Company will repay a total of US$84,313,094 to the Convertible Notes holders by December 31, 2021.
Separately, the Company entered into a supplemental agreement with CIH on September 24, 2021, pursuant to which the Company has agreed to repay CIH the US$84,313,094 borne by CIH under the Settlement Deeds by December 31, 2023.
