On Tuesday, Shimao Group enhanced the terms of its $11.5 billion offshore debt restructuring plan to garner more support from creditors and stave off a looming liquidation petition. In a new development, it has been announced that the liquidation hearing for the Chinese developer has been adjourned to July 31.
In a significant development, Chinese Developer Shimao Group Sweetens Debt Revamp Terms Before a liquidation hearing. Shimao Group (0813.HK) now faces a pivotal moment as its liquidation hearing has been adjourned to July 31. Concurrently, the company has once again extended the deadline for creditors about its debt restructuring plan, highlighting the ongoing efforts to stabilize its financial situation and secure creditor approval.
The Adjournment
The Hong Kong court granted an adjournment following a consensual application by Shimao and the petitioner, state-owned lender China Construction Bank (Asia). This move allows both parties to engage in further discussions regarding the offshore debt restructuring proposal. Shimao’s advisers are actively working with creditors to find a viable solution.
The Early Consent Fee
To incentivize creditor support for the restructuring, Shimao has extended the deadline for the early consent fee until July 31. This fee serves as an incentive for creditors to back the company’s efforts to avoid liquidation.
As the Shimao Group navigates this critical juncture, the eyes of the financial world remain fixed on the outcome. Will the company successfully restructure its debt and avoid liquidation? Only time will tell, but the stakes are high for both Shimao and its creditors.