H. Kong grants China’s Shimao 4-week reprieve to avert liquidation

The Chinese property developer Shimao Group announced on Wednesday that the liquidation possibility has been adjourned as a Hong Kong court rescheduled the hearing to July 31st.

This decision aligns with an extension of the deadline for creditors to review Shimao’s debt restructuring proposal.

The adjournment was requested jointly by Shimao and the petitioning creditor, China Construction Bank (Asia).

The filing also states that Shimao and its advisors are “actively advancing discussions with creditors” regarding its $11.5 billion offshore debt restructuring proposal.

In a bid to secure creditor approval, Shimao has reportedly sweetened the terms of the plan, as previously reported by Reuters on Tuesday.

Additionally, the company has extended the deadline for the early consent fee – an incentive offered to creditors who support the restructuring – to July 31st.

Attribution: Reuters