Logan Group has received approval from offshore creditors holding more than 66% of its offshore debt for its restructuring plan, the Chinese property developer said in an update on the Hong Kong stock exchange on Tuesday.
It is also extending the early-bird fee deadline to February 12 at 5pm from January 27. The fee deadline for the restructuring agreement remains unchanged on February 27 at 5pm.
Noting the strong support from creditors, the company said it also plans to convene a meeting of scheme creditors to accelerate the restructuring plan, subject to approval from the High Court of Hong Kong.
The update comes after Logan proposed a combination of cash, short-term notes, long-term notes and mandatory convertible bonds to restructure its US$7.562bn of offshore debt in early January. Creditors who accept the proposal can opt to exchange debt for cash, short-term notes and MCBs, or a new bond.
The company's offshore subsidiaries holding two projects in Singapore will provide corporate guarantees for the two new bonds, and shares of the subsidiaries will be pledged as security.
It will also remit the surplus funds from specific offshore assets, after covering other debt, obligations and liabilities, working capital and litigation contingencies required for offshore operations for the next 12 months, in a designated account pledged as security for the new notes. Some onshore projects will also be pledged as security.
Alvarez & Marsal Corporate Finance, Haitong International Securities and Kroll (HK) are the financial advisers.