Shimao Group (0813) has sweetened its offshore debt restructuring terms to garner support from creditors, said three sources, as the Chinese property developer scrambles to fend off a liquidation petition filed in a Hong Kong court.
Shimao will face its first court hearing today into the liquidation petition filed by state-owned lender China Construction Bank (Asia) over unpaid loans of HK$1.58 billion.
The sweetened offer from Shimao comes after its creditors strongly opposed a restructuring plan it first laid out in March after having defaulted on its US$11.5 billion (HK$89.7 billion) offshore debt in 2022, the sources said.
In its revised proposal, Shimao offers “mildly” improved terms including an increase in the minimum cash creditors will be able to collect, one of the sources said.
The source added Shimao and some of its creditors were also negotiating other terms of the restructuring, including an offer to exchange debt for mandatory convertible bonds.
Sources previously told Reuters that creditors opposed the March terms because of the size of the losses involved and the lack of upfront payments if the deal was approved.
In other news about embattled developers, China Vanke (2202) has secured a new 10-year loan of 1.5 billion yuan (HK$1.61 billion) from the Bank of Communications (3328).
Hong Kong United Times丨香港聯合時報丨HKUT 