HONG KONG : Cash-strapped Chinese property developer Zhongliang Holdings said its offshore debt restructuring proposal has received support from holders of 38.5 per cent of its bonds so far.
Zhongliang in June announced the terms to restructure its debt worth $930 million, joining only a handful of defaulted developers who have announced their restructuring terms so far since the sector plunged into a debt crisis in mid-2021.
The Shanghai-based developer said with some bondholders they have entered into a restructuring supporting agreement on Friday, and it urged other creditors to sign the agreement by Aug. 11 in order to receive a 0.25 per cent incentive fee.
A debt restructuring requires approval from more than 75 per cent in creditor value to pass.
“The implementation of the holistic solution will alleviate the company’s pressure of offshore indebtedness, allow adequate financial flexibility, enable the group to better manage its business operations, and maximize value for all stakeholders,” the firm said in a filing on Sunday.
In the term sheets announced in June, Zhongliang proposed to pay creditors a 1 per cent upfront principal payment in cash, and the rest in a combination of 3.5-year new senior notes and new convertible bonds.
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