HK: Cash-strapped Chinese creator Shimao Group has proposed a two-class restructuring plan to offshore creditors to repay US$11. 8 billion over a period of three to eight years, according to 2 sources with direct knowledge of the matter and a document seen by Reuters.
Shanghai-based Shimao first missed a community offshore bond obligation last month. Having an outstanding US$6. 1 billion worth associated with international bonds, Shimao is the sixth biggest issuer among Chinese developers, according to Refinitiv.
The plan can, however , exclude US$2. 3 billion offshore debt including offshore project loans, and loans backed simply by onshore financial institutions or even governed by landmass Chinese law.
Shimao did not react to request for comment.
Unhappy about the proposal, offshore creditors plan to request Shimao to treat all classes of offshore creditors similarly, and refrain funds from flowing out of the offshore entities, according to one of the sources.
Creditors also intend to ask the company for an increase in the ratio of the particular amortized repayment, as well as a sweetener to enhance the credit profile from the debt, the person mentioned.
Debtwire very first reported on Tuesday (Aug 23) about Shimao’s restructuring terms that were communicated to some investors last Friday.
Under the proposed restructuring terms, Shimao might repay Class A debt, which are US$4. 65 billion really worth of syndicated financial loans and guaranteed zwei staaten betreffend loans under a good amortization schedule between 36 to 72 months.
An overall total of US$7. thirteen billion Class B debt, which are all of the public and personal bonds and unguaranteed bilateral loans, will be repaid by 6 tranches of new information worth 9 percent to 23 percent of the claims with maturities ranging between 39 to 93 months.