A group of major bondholders of defaulted Chinese developer Shimao Group said on Wednesday it “firmly opposes” the firm’s proposal to revamp $11.5 billion of offshore debt, clouding its prospects amid a deepening crisis in the property sector, reports Reuters. “The ad hoc creditor group firmly opposes Shimao’s restructuring proposal, (and) will unequivocally vote against it and other scheme creditors ought to do the same,” the offshore creditor group’s financial adviser Houlihan Lokey said in a statement.
The group did not cite any reason for the opposition, but three Shimao creditors told Reuters they were not happy about the steep haircut in the proposal, as well as a lack of upfront payments and cash payments in the next four to six years.
Shimao, which defaulted on its offshore debt in 2022 after an unprecedented liquidity crisis hit the sector in mid-2021, on Monday laid out detailed restructuring terms to revamp its offshore debt with an aim to cut its debt by 60%.