China's Shimao says creditors holding over 50% of debt support its revamp plan

Shimao group

03/10/2024 04:36

HONG KONG, Oct 3 (Reuters) - Chinese property developer
Shimao Group  0813.HK  said creditors holding more than 50% of
its debt support its offshore restructuring plan, after it
amended some terms. 
    Shimao said in a filing late on Wednesday the amendments
include controlling shareholders committing to not dispose of
capital stock to below 20% of total voting power, and certain
creditors being paid in mandatory convertible bonds as a fee. 
    The developer, which defaulted on $11.5 billion in offshore
debt in 2022, has been negotiating with creditors to refine the
term sheet ahead of its next liquidation hearing in December. 
        Shares of the Shanghai-based developer opened up 15% on
Thursday after the filing, but reversed course to retreat as
much as 47% as the broader market fell. The Hang Seng Mainland
Properties Index  .HSMPI  declined nearly 9%. 
    Shimao's stock had surged 153% on Wednesday, among the
biggest gainers in the sector as China's stimulus measures and
easier home purchase rules continued to buoy sentiment. 
    Shimao also said in the filing it will again extend the
deadline for an early consent fee, an incentive for creditors to
back the restructuring plan, to Oct. 31. 

 (Reporting by Clare Jim; Editing by Tom Hogue)
 ((clare.jim@thomsonreuters.com;))