This article first appeared on GuruFocus .
Road King Infrastructure ( RKGXF ) is facing a rare public creditor clash as Oaktree Capital Management and PAG push behind the Chinese builder's offshore debt restructuring plan. The dispute has moved beyond private negotiations, with rival bondholder groups holding back-to-back investor calls ahead of a key end-month deadline.
Oaktree and PAG lead a creditor coalition holding about 28% of Road King's outstanding dollar bonds, while telling investors that holders of more than 65% support the plan. A separate group, including Arkkan Capital Management, says holders of about 24% of Road King's dollar notes currently oppose the proposal, leaving the deal under pressure because it needs at least 75% creditor support by value.
Road King has improved the terms by lifting bondholders' equity stake in its Indonesian toll road portfolio to 70% from 62.5%. Supporters argue the revised plan could deliver recovery of up to 30 cents on the dollar, while the holdout group is targeting up to 50 cents. Investors now face a June 26 early-bird deadline, with creditors who sign by then set to receive an extra 0.2% on their holdings.
