Hong Kong-based Logan Group proposes restructuring its $8 bln offshore debt (updated)

Logan

06/01/2025 24:54

(Adds details and background from paragraph 2 onwards)
       Jan 6 (Reuters) - Hong Kong-based developer Logan Group
 3380.HK  said on Monday it was offering a restructuring
proposal for the majority of its about $8.01 billion offshore
debt, including conversion to mandatory convertible bonds for
its offshore creditors.
    Logan Group seeks to restructure $7.56 billion of the total
offshore debt, while also aiming to relieve creditors of its
additional $476 million offshore debt under separate financing
instruments.
    In August, the Chinese developer had secured an HK$8.2
billion ($1.05 billion) loan to refinance a part of this
outstanding debt as it struggled to recover from the property
sector collapse in 2021. 
    Under the restructuring proposal for the larger amount of
the debt, offshore creditors have the option to exchange the
debt for cash, mandatory convertible bonds (MCB), long-term
notes or a combination of MCBs and short-term notes. 
    After failing to make repayments since August 2022, Logan
Group said the restructuring proposal is aimed at relieving the
company's debt burden and restoring its capital structure.
     


($1 = 7.7785 Hong Kong dollars)

 (Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)
 ((Sneha.Kumar@thomsonreuters.com;))