Hedge Funds Cry Foul Over Chinese Education Firm’s Default
- XJ International failed to redeem convertible debt in March
- PAG, Oasis among hedge funds that have taken legal action
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Hedge funds and other international investors are sounding alarms after a profitable education company from China defaulted on its convertible bonds in March.
A group of bondholders, which includes some of Asia’s most prominent hedge funds, have alleged in public statements that the company chose not to pay its offshore debt even though its business is healthy and growing. The investors, which include Hong Kong-based Oasis Management Co., PAG and Enhanced Investment Products Ltd., said the borrower’s action could set a dangerous precedent for the broader market.