(Corrects title and paragraph 1 to say Logan Group is based in Shenzhen, not Hong Kong)
(Reuters) – Shenzhen-based developer Logan Group said on Monday it was offering a restructuring proposal for most of its roughly $8.01 billion offshore debt, including conversion to mandatory convertible bonds for its offshore creditors.
Logan Group is seeking to restructure $7.56 billion of total offshore debt, while also aiming to release creditors of its additional $476 million offshore debt under separate financial instruments.
In August, the Chinese developer secured an 8.2 billion Hong Kong dollar ($1.05 billion) loan to refinance some of this outstanding debt as it struggles to recover from a property sector collapse in 2021.
Under the restructuring proposal for a larger amount of debt, offshore creditors have the option to exchange the debt for cash, mandatory convertible bonds (MCBs), long-term notes or a combination of MCBs and short-term notes.
After defaulting on repayments from August 2022, Logan Group said the restructuring proposal aims to reduce the company’s debt burden and restore its capital structure. ($1 = 7.7785 Hong Kong dollars)
