Golden Wheel Tiandi has completed the first creditor-led offshore debt restructuring by a Chinese mainland property developer valued at around USD507 million. Zhong Lun Law Firm, Ogier and Sullivan & Cromwell advised on the transaction.
This transaction is also another step in reshaping Golden Wheel Tiandi’s capital after completing a USD450 million restructuring in 2022. The deal was the first creditor-led asset control restructuring of publicly issued offshore debt by a Chinese property developer, and the structure was expected to improve the predictability of recovery for creditors, Sullivan & Cromwell said in a press release.
The restructuring was implemented through a scheme of arrangement approved by the Hong Kong High Court. Under the scheme, Golden Wheel Tiandi issued new notes with an aggregate principal amount of USD507 million, 30.52 million new shares and a consent fee of around USD466,400 to scheme creditors in exchange for the cancellation and release of existing debt claims.
The original notes have now been cancelled, while the original loan facilities and related liabilities have been discharged.
Zhong Lun acted as US and Hong Kong legal counsel to Golden Wheel Tiandi. The team was led by international partner Renee Xiong and counsel Leonard Lou, with support from partner Alan Wong. Ogier advised on British Virgin Islands and Cayman Islands law, with partner Yuki Yan leading the team and Anthony Oakes, head of Ogier’s finance practice in Asia supporting.
Sullivan & Cromwell counselled the creditors, led by partner Jacqueline Tang.
Headquartered in Nanjing, Golden Wheel Tiandi was founded in 1994 and is listed on the HKEX. The integrated property developer focuses on mixed-use projects above metro stations and in high-speed rail new towns. Its portfolio includes themed shopping plazas, metro retail precincts, boutique residential developments and high-end hotel apartments, with operations across the Chinese mainland and Hong Kong.
