Chinese developer Shimao seeks to pay off $11.8 billion debt over 3-8 years – sources

0

HONG KONG, Aug 23 (Reuters) – Cash-strapped Chinese developer Shimao Group has offered a two-tier restructuring plan to offshore creditors to repay $11.8 billion over three to eight years, two sources say. having direct knowledge of the case. and a document seen by Reuters.

Shanghai-based Shimao (0813.HK) defaulted on an offshore government bond for the first time last month. With $6.1 billion in international bonds outstanding, Shimao is the sixth-largest issuer among Chinese developers, according to Refinitiv. Read more

The plan will, however, exclude $2.3 billion in offshore debt, including offshore project loans and loans guaranteed by onshore financial institutions or governed by mainland Chinese law.

Join now for FREE unlimited access to Reuters.com

Register

Shimao did not respond to request for comment.

Unhappy with the proposal, offshore creditors are considering asking Shimao to treat all categories of offshore creditors equally and to block capital from flowing out of offshore entities, according to one of the sources.

Creditors are also considering asking the company for an increase in the amortized repayment ratio and a sweetener to improve the debt’s credit profile, the person said.

Debtwire reported for the first time on Tuesday on Shimao’s restructuring terms that were communicated to some investors last Friday.

Under the proposed restructuring terms, Shimao would repay Class A debt, which amounts to $4.65 billion in syndicated loans and secured bilateral loans, on an amortization schedule of between 36 and 72 months.

A total of $7.13 billion of Class B debt, which are all public and private bonds and unsecured bilateral loans, would be repaid by six tranches of new notes worth 9% to 23% of claims. with maturities between 39 and 93 months.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Clare Jim and Xie Yu; Editing by Kim Coghill & Shri Navaratnam

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.