A&O Shearman, Sidley Austin, and Weil, Gotshal & Manges are advising Shimao Group on the significant restructuring of its $11.5 billion offshore debt. This development follows the approval of a court-sanctioned arrangement in Hong Kong on March 13. The restructuring was initiated after Shimao faced a liquidation suit from China Construction Bank (Asia) due to an inability to repay loans totaling approximately $203 million.
Resistance initially emerged from stakeholders concerning the restructuring plan. There were concerns over a “steep haircut” and the absence of immediate or short-term cash payments projected over the next four to six years.
For a more detailed analysis and further developments, the full article is available here.