Pacific Oak returns to bondholders: Seeking relief in debt restructuring terms

Just months after the court approved its debt restructuring, Pacific Oak Holdings is once again turning to Series B bondholders to change the rules. The reason: difficulties in getting subsidiaries to sign guarantees.

Pacific Oak Holdings is convening a meeting of Series B bondholders on October 4, 2026, to approve amendments to its debt restructuring plan which was approved in June. The company is struggling to obtain full guarantees from subsidiaries as required by the restructuring, and is therefore asking holders to approve a softened guarantee text including exceptions, as well as extending the deadline for completing the arrangement to October 20.

Real estate company Pacific Oak Holdings (Pacific Oak Esower (BVI) Holdings, Ltd) is returning to its Series B bondholders in a renewed attempt to align reality with its plans, convening them for a meeting to be held on October 4, 2026. On the agenda: voting on material amendments to the company's debt restructuring, which was approved by the court just a few months ago. The move exposes the execution difficulties the company is encountering on its path to stabilizing its financial position.

According to a report issued by the bond trustee, Reznik Paz Nevo Trusts, the core of the request for change lies in "difficulties regarding the signing of guarantee deeds by the company's subsidiaries in favor of the restructuring creditors." Granting these guarantees was a central condition in the original debt restructuring, intended to provide collateral to the creditors. Now, it appears the company is unable to fulfill this commitment as originally worded.

The solution proposed by Pacific Oak is to soften the terms. Instead of the original guarantees, the company is asking holders to approve a new wording of the guarantee deeds, which includes "several exceptions limiting the scope of the guarantees and the possibility of their enforcement." In the report, this move is defined as "specific relief in the terms of the debt restructuring." In addition, the company is asking for a further extension and requests to postpone the deadline for the fulfillment of all conditions precedent of the restructuring until October 20, 2026. Both of these issues will be put to a vote at the upcoming meeting.

This current development is another chapter in the ongoing debt restructuring saga. To recall, the process officially began with the filing of a request to convene a creditors' meeting by the trustee back in December 2025. Following discussions, the creditors' meeting approved the restructuring outline on April 30, 2026, and the honorable court gave it the force of a judgment on June 5, 2026. However, as noted, the implementation of the arrangement has encountered obstacles.

The need to convene the current meeting arose following these difficulties, and the trustee applied to the court on September 7, 2026, requesting approval to convene it. The court approved the request on September 15, thus paving the way for the vote to be held in early October.

For the proposed amendments to be approved, a special majority of at least 75% of the bondholders participating in the vote (excluding abstentions) is required. The meeting will be held without physical gathering, using an electronic voting system. In the event that the required quorum (50% of the par value of the series) is not achieved, the meeting will be postponed to October 5, at which point a reduced quorum of only 20% will be required. The voting results will determine whether Pacific Oak receives the flexibility it needs to finally complete the debt restructuring, or whether it will encounter another hurdle on its path to rehabilitation.