The winding-up case of Chinese real estate developer Shimao Group has been postponed again to July 31. This delay is due to the company once more extending the response period for creditors to its debt restructuring plan. Shimao Group disclosed this information in a document filed on Wednesday.
The extension was approved by a Hong Kong court, based on a joint application by Shimao Group and the applicant, state-owned bank China Construction Bank (Asia). The document was submitted to the Hong Kong Stock Exchange, detailing the process.
The document stated that Shimao Group and its advisory team are actively negotiating with creditors, discussing its offshore debt restructuring proposal. To encourage creditors to support the restructuring plan, Shimao Group has extended the early consent fee deadline to July 31. The early consent fee serves as an incentive to encourage creditors to accept and support the restructuring plan.
According to a Reuters report on Tuesday, Shimao Group has improved the terms of its $11.5 billion offshore debt restructuring plan to gain creditor support. The company hopes that these improvements will help fend off the winding-up application, ensure it continues operations, and ultimately achieve financial stability.
This series of delays and negotiations indicates that Shimao Group is under significant financial pressure and urgently needs to reach a restructuring plan that satisfies all stakeholders. The active efforts of the company and its advisory team demonstrate their firm determination to resolve the debt issues and their willingness to reach a consensus through negotiations.
