Sino-Ocean’s Hong Kong wind-up case delayed as UK ruling looms
The company is involved in parallel proceedings in London on its debt plan for both bondholders and bank lenders
A HONG Kong court delayed a hearing on Sino-Ocean Group Holding’s restructuring agreement with lenders, as the state-linked builder awaits a decision later this month on a UK case involving a debt plan for all creditors.
Sino-Ocean earlier said that a group of loan lenders holding 86.2 per cent of its debt had voted in favour of the Hong Kong scheme, passing a threshold of 75 per cent required for the restructuring arrangement in the city. The next Hong Kong hearing is set for Feb 19, “given the pending decision of the English Court”, according to a company filing.
The company is involved in parallel proceedings in London on its debt plan for both bondholders and bank lenders.
The UK case is being closely monitored by industry players in Asia because it is a prominent example of a Chinese debtor trying to tap a UK insolvency law. Known as a cross-class cramdown, it can impose restructuring terms on a dissenting class of creditors even without a required approval threshold.
Sino-Ocean’s relationship with China Life Insurance came under scrutiny in the London hearings and the judge asked for further information about the builder’s shareholders. A UK judge is set to hand down a decision on that case on Jan 29.
China Life is one of the country’s biggest state-owned insurers and owns 29.59 per cent of Sino-Ocean, according to its latest annual report.
An ad-hoc group of bondholders has been seeking support from China Life among other shareholders, ever since the builder defaulted in 2023. BLOOMBERG
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