China’s Sino-Ocean enters deal to restructure US$5.64 billion offshore debt

STATE-BACKED Sino-Ocean Group has reached an agreement with some of its creditors to restructure offshore debt worth US$5.64 billion, the Chinese real estate developer said on Thursday (Jul 18).

The Beijing-based company will issue a new US dollar-denominated term loan facility and notes worth US$2.2 billion to its creditors, according to the proposal.

The remaining claims of creditors after accounting for the new loans and notes will be fulfilled by issuing convertible bonds or interest-bearing perpetual securities, the property developer said.

Certain bondholders will receive 0.1 per cent early bird consent fee and 0.05 per cent consent fee if they support the restructuring proposal, according to the company.

Sino-Ocean’s problems are part of the debt crisis that has beset China’s beleaguered property sector. The company started the process of restructuring its offshore debt in the second half of last year.

Last month, Sino-Ocean said it has received a winding-up petition filed against the company by Bank of New York Mellon in a Hong Kong court. REUTERS