On the other hand, if the conglomerate goes into bankruptcy proceedings, the restructuring process would likely favor notes due next year and beyond. That’s because they happen to be guaranteed. The 2020 bond only has a keepwell clause, essentially a gentlemen’s agreement, from Tsinghua Holdings, the university’s wholly owned subsidiary that controls Unigroup. Earlier this year, a Beijing court rejected the validity of the keepwell clause in bonds issued by Peking University Founder Group, another conglomerate that went into bankruptcy. Unigroup and Founder were often held up in comparison because each was the favorite commercial offspring of two rival state-run universities.