Sidley is acting as the international legal adviser to Shimao Group Holdings Limited (HKEX: 0813, Shimao), a Shanghai-based leading real estate developer, on the restructuring of its offshore debt in the aggregate principal amount of approximately US$11.5 billion. The scheme of arrangements (Scheme) was sanctioned by the High Court of Hong Kong on March 13, 2025, and is expected to complete before the end of April 2025.
The restructuring involves a substantial portfolio of existing debt instruments comprising U.S. dollar–denominated notes and syndicated and bilateral loans. Documentation involves negotiations with several groups of creditors and a hybrid of debt instruments and loan instruments. The restructuring is being conducted in parallel with bilateral restructurings of certain other offshore debts outside of the scope of the scheme in the aggregate principal amount of approximately US$2 billion.
The Scheme achieved widespread engagement with a total of 2,079 Scheme creditors, representing approximately US$11.6 billion of voting Scheme claims, attending the Shimao Scheme meeting on February 24, 2025. An overwhelming majority representing 98.75% of the total number of Scheme creditors supported the Scheme.
Throughout the restructuring process, Sidley constructively engaged with the creditors to facilitate the formulation of a consensual restructuring proposal and new debt instruments documents.
The matter is being led by partner Renee Xiong (Hong Kong), with support from Sidley’s dedicated teams across practices:
- Capital Markets: Leonard Lou (counsel, Beijing), Scarlet Feng (senior managing associate, Hong Kong), Peter Liu (associate, Hong Kong), and Kristine Zhang (senior legal assistant, Beijing)
- Litigation: Desmond Ang (partner, Hong Kong), Sophia Tong (counsel, Hong Kong), Derek Yuen (associate, Hong Kong), and Wincy Yim (trainee solicitor, Hong Kong)
- China Corporate Finance: Constance Choy (partner, Hong Kong), Olivia Ngan (partner, Hong Kong), Hon Auyeung (counsel, Hong Kong), Alan Wong (counsel, Hong Kong), Selina Wong (senior managing associate, Hong Kong), Sammi Lee (managing associate, Hong Kong), Kelly Lam (managing associate, Hong Kong), and Kenny Wong (associate, Hong Kong)
- Restructuring: Dhevine Chandrapala (partner, Hong Kong), Ibrahim Babiker (managing associate, Hong Kong), and Jasper Millard (associate, London)
