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多家房企推出境外债重组方案

Multiple real estate companies have proposed overseas debt restructuring plans.

Gelonghui Finance ·  Dec 18 10:58

Recently, several real estate companies have launched overseas debt restructuring plans to accelerate the pace of debt restructuring.

On December 17, R&F PROPERTIES plans to introduce a new overseas debt restructuring plan. R&F PROPERTIES announced that it is in dialogue with stakeholders regarding the proposed restructuring of its offshore debt, aiming to reach a solution that treats all stakeholders fairly. The announcement stated that the restructuring is expected to be implemented through a restructuring plan under the jurisdiction of the courts of the United Kingdom or other applicable legal jurisdictions, or, where deemed necessary by the issuer and the company, through any other company actions, legal procedures, or other steps aimed at implementing the restructuring that require shareholder consent.

According to reports, the overall plan for LOGAN GROUP's overseas debt restructuring is also expected to be launched soon.

Previously, SHIMAO GROUP also insisted on introducing an overseas debt restructuring plan despite ongoing negotiations with a group of creditors yielding no results, and it was approved by creditors on December 12 of this year.

The inability to reach an agreement with the group of creditors has become a direct reason for the slow progress of overseas debt restructuring among real estate companies.

Industry insiders analyze that, in the absence of an agreement with the group of creditors, real estate companies continue to insist on introducing overseas debt restructuring plans out of necessity. On one hand, some companies have been negotiating overseas debt restructuring for as long as 2 to 3 years, during which the real estate industry has faced sluggish sales and a significant depreciation in asset prices, further intensifying the financial pressure on these companies. Objectively, companies need to adjust their restructuring plans in accordance with market conditions and cash flow situations to ensure their feasibility, avoid frequent second restructurings, and retain the actual significance of restoring the operational and debt repayment capabilities through debt restructuring.

On the other hand, some creditors have high expectations for the recovery of the companies' operational status, demanding that the restructuring enterprises continuously 'optimize' the restructuring plans, which actually reflects a lack of thorough understanding of the real operating environment of the industry. Restructuring plans that exceed the companies' capacity are often impractical and ultimately disadvantage the overall protection of creditor rights.

Furthermore, there are differences in the interests of various types of creditors. The creditor group only represents a portion of creditors, and if the group proposes a plan solely for its own benefit without fully considering the balance of interests among all parties, it may result in the plan losing its fairness and becoming unfeasible.

According to informed sources, LOGAN GROUP has received numerous suggestions and requests from overseas creditors, hoping the company will quickly launch an overseas debt restructuring plan, with many overseas creditors expressing support for LOGAN's restructuring plan.

Clearly, the market is increasingly beginning to reflect: what kind of debt restructuring plan is a successful plan.

Taking R&F PROPERTIES as an example, in 2022, R&F PROPERTIES took the lead in completing the overall restructuring of domestic and foreign debts. In July of the same year, R&F PROPERTIES' subsidiary Yilue announced that 10 US dollar bonds were merged into 3, with an extension of 3-4 years, and the total amount of the bonds was nearly 4.944 billion US dollars. This extension of US dollar bonds was then referred to by the market as the largest debt restructuring case among Asian real estate companies. However, R&F has now restarted the overseas restructuring plan, showing the enormous difficulties and pressures faced by real estate companies, as the original restructuring plan can no longer be implemented.

Many industry insiders point out that the current industry may need a practical and feasible restructuring plan that considers the overall debt of the enterprises. Only plans that are fair, reasonable, and aligned with the current market reality can fundamentally help enterprises restore their capital structure, ensure the long-term sustainable operation of the company, and safeguard the long-term interests of all creditors, which is the only truly responsible approach to all investors.

Some creditors admit that based on the current industry situation, most overseas creditors have undergone significant changes in their views on the debt restructuring of real estate companies, and the expectations of creditors are gradually returning to reality. As long as real estate companies do their utmost to resolve debts and treat all creditors fairly and justly, creditors generally provide support. SHIMAO GROUP's launch of an overseas debt restructuring plan from the perspective of treating the interests of all creditors equitably, and ultimately gaining the approval of a majority of creditors through voting, is the best example.

In the current industry situation, everyone is trying to find a balance. Whether the interests of a small group of creditors align with the demands of the majority of creditors, what kind of plan can truly help the enterprise emerge from difficulties while protecting the long-term interests of creditors, is a process that requires investors and enterprises to move towards each other, communicate, and negotiate, which is also an essential process for real estate companies to "survive."

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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