5 days ago
- Business
- South China Morning Post
Cifi creditors approve US$7.9 billion offshore debt restructuring plan
Distressed Chinese developer Cifi Holdings won backing from a majority of creditors for a US$7.9 billion offshore debt revamp, a key step for the cash-strapped developer as China's property market shows
little sign of recovery.
According to a Wednesday stock exchange filing, 1,236 out of 1,250 creditors, holding US$7.3 billion of Cifi's US$7.9 billion in offshore debt, voted in favour of the developer's latest debt restructuring plan.
Taking into account the amount of claims to be cancelled or converted into mandatory convertible bonds and then converted into shares, the group's offshore debt obligations will decrease by around US$5.3 billion, or 66 per cent of the total, the company said. Court approval for the restructuring will be decided at a hearing in Hong Kong on June 26.
'The completion of the proposed restructuring will significantly alleviate the group's liquidity pressure and provide it with a sustainable capital structure,' Cifi said in the filing, adding that in the long term, it would switch to an asset-light business model to 'survive the profound adjustment cycle of China's property development industry'.
Signage for Cifi Holdings. Photo: Handout
