Hong Kong-based Logan Group proposes restructuring its $8 billion offshore debt

(Reuters) – Hong Kong-based developer Logan Group mentioned on Monday it was providing a restructuring proposal for almost all of its about $8.01 billion offshore debt, together with conversion to obligatory convertible bonds for its offshore collectors.

Logan Group seeks to restructure $7.56 billion of the full offshore debt, whereas additionally aiming to alleviate collectors of its further $476 million offshore debt beneath separate financing devices.

In August, the Chinese language developer had secured an HK$8.2 billion ($1.05 billion) mortgage to refinance part of this excellent debt because it struggled to get better from the property sector collapse in 2021.

Below the restructuring proposal for the bigger quantity of the debt, offshore collectors have the choice to alternate the debt for money, obligatory convertible bonds (MCB), long-term notes or a mix of MCBs and short-term notes.

After failing to make repayments since August 2022, Logan Group mentioned the restructuring proposal is geared toward relieving the corporate’s debt burden and restoring its capital construction.

($1 = 7.7785 Hong Kong {dollars})