Chinese developer Shimao sweetens debt revamp terms ahead of liquidation hearing, sources say By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
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Source: Investing.com
- Shimao Group Debt Restructuring: Shimao Group has improved its offshore debt restructuring terms to gain support from creditors and avoid a liquidation petition in a Hong Kong court.
- Opposition to Initial Plan: Creditors strongly opposed Shimao's initial restructuring plan in March after the company defaulted on $11.5 billion offshore debt in 2022.
- Revised Proposal Details: The revised proposal offers slightly better terms, including an increase in minimum cash for creditors, with negotiations ongoing on other restructuring terms like exchanging debt for mandatory convertible bonds.
- Challenges in Chinese Property Sector: Many Chinese developers are facing challenges in meeting debt repayment obligations, leading to lengthy negotiations with creditors amid a tough property market outlook.
- Approval Deadline and Requirements: Shimao's deadline for an early consent fee expires soon, requiring approval from over 75% of offshore debt-holding creditors to implement the restructuring and prevent liquidation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
