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Pivotal USD11.5 billion restructuring of Shimao Group Holdings successfully sanctioned

Pivotal USD11.5 billion restructuring of Shimao Group Holdings successfully sanctioned
Published Date
Mar 21 2025

A&O Shearman proudly advised the co-ordination committee of lenders (CoCom) on the successful restructuring of over USD11.5bn in offshore debt for Hong Kong-listed Shimao Group Holdings Limited (Shimao). This landmark restructuring was achieved through a court-sanctioned Hong Kong scheme of arrangement.

Shimao is a substantial Chinese residential, hotel and commercial property developer and manager with significant investments in Hong Kong and a complex corporate and debt structure. The group’s operations were severely impacted by the COVID-19 pandemic and the distress being experienced by the real estate sector in Mainland China, leading Shimao to reach out in early 2022 to its Bank and Bondholder creditors to discuss a general restructuring of its indebtedness. This was one of the first major Chinese property developers to engage with its creditors on a structured basis, and due to its complexity, the restructuring has taken over three years to implement.

A&O Shearman, as the CoCom's legal advisors, collaborated closely with Shimao and the Ad Hoc Group of Bondholders (AHG) and their advisers on a holistic restructuring process. This process also recognized the need for several discrete project and asset-based bank debt refinancings. A&O Shearman played a pivotal role in structuring the deal and facilitating lengthy negotiations among the Company and other stakeholders, including the AHG. These efforts culminated in the Hong Kong Court's sanctioning of the restructuring scheme on March 13, 2025.

Viola Jing A&O Shearman partner commented 

“The Shimao Group restructuring, one of the earliest and most protracted in the recent wave of Chinese property developer restructurings, has ultimately received overwhelming support (over 95%) from Bondholders and Banks alike, voting as a single class. This restructuring highlights the benefits of building inter-creditor consensus and showcases our team’s ability to craft, facilitate, and implement effective and pragmatic solutions for large-scale, complex cross-border restructurings. This transaction yet again demonstrates our capabilities as a full-service global firm and as the trusted legal adviser to creditors and other stakeholders in the Greater China real estate sector and beyond."

Tsui Miu (Viola) Jing

Partner

The core A&O Shearman team was led by Hong Kong-based partner, Viola Jing, with support from Ian Chapman (consultant, Hong Kong), Leona Healey (registered foreign lawyer, Hong Kong), Oliver Saunders (registered foreign lawyer, Hong Kong), Jack Kwan (associate, Hong Kong), and Tomson Pong (associate, Hong Kong). Additional support was provided by Yvonne Ho (partner, Beijing), Kyungwon Lee (partner, Hong Kong), Agnes Tsang (partner, Hong Kong), Jonathan Hsui (partner, Hong Kong), James Yao (partner, Hong Kong), Hae-Ran Song (of counsel, Hong Kong), Karen Chan (of counsel, Hong Kong), Jiayin Yu (registered foreign lawyer, Hong Kong), Kylie Wong (Peerpoint legal consultant, Hong Kong), Rami Marginean (senior associate, Singapore), Fion Lo (senior associate, Hong Kong), Gwyneth Lau (associate, Hong Kong), and Peggy Zeng (associate, Beijing).

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