Hong Kong builder Emperor revises debt plan, seeks loan extensions
Emperor International Holdings has sent a revised debt restructuring proposal to some lenders in recent days, seeking to extend the maturity of its bank borrowings to Dec 31, 2027, according to people familiar with the matter. The company earlier reported that it had HK$16.6 billion (S$2.7 billion) in overdue bank loans, breaching certain terms on the facility agreements.
Banks with a majority interest in Emperor International's loans have formed a coordination committee to negotiate restructuring terms with the company, the people said, asking not to be identified discussing private matters. No agreement has been reached so far despite months of talks, they added.
Emperor International is the property arm of conglomerate Emperor Group, known for its luxury watch business and its entertainment unit, which manages a stable of local celebrities, including Nicholas Tse and Joey Yung, according to its website.
The company's debt woes reflect the widespread impact of Hong Kong's years-long property slump, which has left real estate giants such as New World Development and smaller firms such as Emperor International and Grand Ming Group Holdings struggling to stay afloat. Property prices in the city have plummeted by around 30 per cent over the past four years, reaching a nine-year low as banks have tightened credit lines, according to Bloomberg-compiled data.
Property developers are navigating industry-wide pressure and Emperor International is no exception, but continues to operate as usual, with constructive negotiations underway for some time with banks to amend terms, and normal financial procedures are currently being processed, the company said in an e-mailed statement in response to a Bloomberg inquiry about its debt talks. The company also said that it maintains a healthy balance sheet position.
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The latest revision came after banks rejected an earlier proposal that the company sent in March, the people added. Under the previous plan, Emperor had sought a three-year extension on the borrowings and offered second-lien mortgages on some of its commercial real estate in Hong Kong as a credit enhancement, the people said.
Emperor International, which owns residential properties and office towers in Hong Kong, Beijing and overseas, also offered about HK$77 million in fresh funding to service debt repayment in its earlier proposal, but banks demanded more upfront funds, the people added.
The developer has missed interest payments on some loans since last year, people familiar with the matter said. Emperor International said in June that it was negotiating with banks on a restructuring plan.
As at Mar 31, 2025, Emperor had net current liabilities of HK$13.08 billion, versus cash, bank balances and bank deposits of HK$639.6 million, according to its most recent annual results. The company has a market capitalisation of HK$1.13 billion, according to Bloomberg-compiled data. BLOOMBERG
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