Logan Group says creditors holding 66% debt have agreed to overhaul plan

DEFAULTED Chinese developer Logan Group said creditors holding over 66 per cent of the group’s US$6.2 billion offshore debt have signed an agreement in support of its restructuring plan, a key progress in its years-long overhaul talk.

The Shenzhen-based homeseller said that other creditors holding over 12 per cent of debt have indicated support, but required more time to complete their internal approval processes due to the Chinese New Year holiday, according to a Hong Kong Stock Exchange filing late on Monday (Jan 27). The early-bird deadline has been extended to Feb 12, the filing shows.

If Logan is able to obtain such approvals, the company’s support level for the debt plan will surpass 78 per cent, meeting the minimum threshold of 75 per cent required for the execution of a restructuring arrangement in Hong Kong.

That would bring the tussle between Logan, which has more than 150 residential developments in China, and its creditors one step closer towards the finishing line. The builder’s restructuring process has stretched over several years, marked by periods of progress as well as setbacks.

Logan, once the nation’s 20th-biggest builder by sales, updated its restructuring plan earlier this month. The amount of debt eligible for cash payouts to creditors has been reduced to a cap of US$787 million, from US$1.3 billion announced in January 2024.

Logan won support from a group of bondholders on the debt restructuring plan in January, after some negotiation. Prices of the company’s greenback bonds are trading at distressed levels, below 10 cents on the dollar, according to Bloomberg data. BLOOMBERG

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