China's Shimao says creditors holding over 50% of debt support its revamp plan
HONG KONG, Oct 3 (Reuters) -Chinese property developer Shimao Group 0813.HK said creditors holding more than 50% of its debt support its offshore restructuring plan, after it amended some terms.
Shimao said in a filing late on Wednesday the amendments include controlling shareholders committing to not dispose of capital stock to below 20% of total voting power, and certain creditors being paid in mandatory convertible bonds as a fee.
The developer, which defaulted on $11.5 billion in offshore debt in 2022, has been negotiating with creditors to refine the term sheet ahead of its next liquidation hearing in December.
Shares of the Shanghai-based developer opened up 15% on Thursday after the filing, but reversed course to retreat as much as 47% as the broader market fell. The Hang Seng Mainland Properties Index .HSMPI declined nearly 9%.
Shimao's stock had surged 153% on Wednesday, among the biggest gainers in the sector as China's stimulus measures and easier home purchase rules continued to buoy sentiment.
Shimao also said in the filing it will again extend the deadline for an early consent fee, an incentive for creditors to back the restructuring plan, to Oct. 31.
Reporting by Clare Jim; Editing by Tom Hogue
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