Restructuring partner John Marsden and counsel Ben McCosker (both Hong Kong) are quoted in IFLR on Chinese developers unveiling long-awaited restructuring plans for their offshore debts.
"A lot of these restructuring plans depend on the market resurfacing and the cycle of property development getting kick started again,” said John. “The only thing that developers can do now is seek lender support to extend maturities, convert debt into equity-linked instruments and for creditors to accept limited write downs. The developers have got some support from the government, but additional support would be both welcome and perhaps necessary,” he added.
Ben said the offshore schemes of arrangement to settle the debts of these companies will be the biggest activity for the next 12 months.