GK Investment Holdings, LLC (“GKIH”) 7% Bonds Will Default if Maturity Date is Not Extended

GK Investment Holdings has issued a warning to investors in it’s “7% Bonds” that if 90% of the investors do not exchange their current bonds with “new bonds” – would which extend the maturity date from September 2022 to September 2025 – then GKHI will likely go into default.

Sonn Law Group represents individual investors in claims against financial advisors and brokerage firms. We work on a contingency fee which means we only get paid if we recover damages for you. Contact us online anytime or call us at 866-827-3202 to speak with an attorney about your concerns.

What does this mean for GKIH 7% Bonds investors?

If you were advised to invest in GKIH 7% Bonds by your financial advisor or stockbroker, you should speak with an attorney right away. Brokerage firms have a legal obligation to conduct adequate due diligence and to only reccomend suitable investments. If you end up suffering significant losses because you were advised to invest in GK Investment Holdings 7% bonds, you may be able entitled to damages. Our investment loss attorney may be able to help you recover losses in the form of a FINRA arbitration claim.

What exactly does GK Investment Holdings say in their letter to investors?

Here is the relevant excerpt from the letter:

“Pursuant to that certain Offering Memorandum and Consent Solicitation Statement dated March 29, 2022 (the “Original Memorandum”), we offered you the option to exchange your existing 7% bonds due September 30, 2022 (the “Old Bonds”) for new bonds (the “New Bonds”), in an effort to extend the maturity date from September 30, 2022 to September 30, 2025 (the “Exchange Offer”). As previously noted, we need at least 90% of bondholders to agree to participate in the exchange for us to proceed to close the Exchange Offer and issue the New Bonds to participants. If we are unable to generate such participation, then all of the Bonds will mature September 30, 2022 and if the properties have not been sold by that time in order to generate liquidity to redeem the Bonds, then GKIH would be in default under the Trust Indenture. To date, GKIH has not received the 90% bondholder participation required to close the Exchange Offer and issue the New Bonds.”