Another property company was brought a winding-up petition.
On the morning of April 8, Shimao Group announced on the Hong Kong Stock Exchange that China Construction Bank (Asia) Corporation Limited filed a winding-up petition against the Company with the High Court of the Hong Kong Special Administrative Region on April 5, 2024, involving financial obligations of the Company amounting to approximately HK $1,579.5 million.
According to the announcement, the company believes that the petition does not represent the common interests of the company's overseas creditors and other related parties. In order to protect the interests of its related parties, the Company will vigorously oppose the petition and continue to move forward with the offshore debt restructuring to maximize the value of its related parties.
Previously, on the evening of March 25, Shimao Group disclosed inside information about the "proposed offshore debt restructuring clause". According to the announcement, Shimao Group seeks to restructure the overall claims of the scheme creditors, including the overall principal amount of the scheme creditors, all accrued and unpaid interest calculated at the original interest rate of the offshore debt as of the effective date of the restructuring. The scheme creditors will be provided with four options in accordance with the scheme creditor options set out in the term sheet, which are designed to meet the different preferences and needs of the scheme creditors.
The first option of the restructuring scheme is a short-term facility, in which the scheme creditor may elect to obtain a short-term instrument in the form of a short-term note or short-term loan in an amount equal to 100% of the scheme creditor's principal amount of the scheme creditor's claim. The short-term notes and short-term loans will be issued by Shimao Group with a tenor of six years and an aggregate principal amount of up to US$3 billion. Interest will accrue at the rate of 50% of the outstanding principal amount of the Short-Term Note or Short-Term Loan (as the case may be) and will be paid semi-annually as follows.
Shimao Group will also repay the Short-Term Loan on or before each Repayment Date in an aggregate principal amount equal to 50% of the principal amount of the Short-Term Loan, plus any accrued unpaid interest equal to 50% of the outstanding principal amount of the Short-term Loan as of such Repayment Date.
The second option is a long-term instrument, where the scheme creditor may elect to obtain a long-term instrument in the form of a long-term note or long-term loan in the form of a principal amount equal to 100% of the scheme creditor's claim. Long-term notes and long-term loans will also be issued by Shimao Group with a tenor of nine years and an aggregate principal amount of not more than US$4 billion. Interest on the outstanding principal amount of the long-term instrument will be accrued and paid semi-annually as follows.
For the first six years from the effective date of the restructuring: 3.0% p.a., all in kind;
From the seventh year from the effective date of the restructuring: 2.0% per annum, all in cash.
The third option is the Mandatory Convertible Bonds, which are 100% of the principal amount of the scheme creditors' claim and can be converted into zero-coupon compulsory convertible bonds with a maturity of 1 year for the new shares of Shimao Group.
The fourth option is a combination of different instruments with a fixed combination of different instruments with a total principal amount equal to 100% of the principal amount of the creditors of the scheme. The fixed portfolio consists of a short-term instrument with a principal amount equal to 25% of the principal amount of creditors of the scheme, a long-term instrument with a principal amount equal to 35% of the principal amount and a mandatory convertible bond with a principal amount of 40%.
In today's announcement, the World Trade Group said that the company has been holding goodwill restructuring discussions with its overseas creditors and promised to continue to actively communicate with its overseas creditors on its overseas restructuring matters. The Company encourages all overseas creditors to carefully consider the restructuring plan announced by the Company on March 25 and support the implementation of the restructuring.
On March 28, Shimao Group released its 2023 annual results. According to the performance report, the company's contracted sales in 2023 will be RMB42.822 billion, the contracted sales area will be 2.947 million square meters, the turnover will be approximately RMB59.464 billion, a decrease of approximately 5.7% from the previous year, the gross profit will be approximately RMB5.848 billion, an increase of approximately 10.7% year-on-year, and the gross profit margin will be 9.8%, the loss attributable to equity holders will be approximately RMB21.030 billion, and the loss attributable to core business will be approximately RMB14.508 billion.
As of the end of the Reporting Period, Shimao Group's net gearing ratio was approximately 473.2%, an increase from 2022, an asset-liability ratio of approximately 88.7% excluding advance receipts, and a cash-to-short-debt ratio of 0.04. The total repayment amount of bank loans, loans from other financial institutions and bonds owned by the company is about 263.96 billion yuan, of which 151.39 billion yuan is less than one year.
Source: Securities Times
Editor-in-charge: Luo Xiaoxia
Proofreading: Peng Qihua