Financial Advisory
Aoshearman
Full Credential Description
Shimao Group Holdings, a significant player in the Chinese real estate market, faced severe operational challenges due to the COVID-19 pandemic and the broader distress within the Mainland China real estate sector. This turmoil led the company to engage with its Bank and Bondholder creditors in early 2022 to initiate a comprehensive restructuring of its over USD11.5 billion in offshore debt. The complexity of Shimaos corporate and debt structure necessitated a structured approach to negotiations, making it one of the first major Chinese property developers to undertake such a process. AO Shearman acted as legal advisors to the coordination committee of lenders (CoCom) and worked closely with Shimao and the Ad Hoc Group of Bondholders (AHG) throughout the restructuring process. Their tailored solution involved a holistic restructuring strategy that included several discrete project and asset-based bank debt refinancings. The legal team played a crucial role in structuring the deal and facilitating extensive negotiations among all stakeholders, which ultimately led to the Hong Kong Court sanctioning the restructuring scheme on March 13, 2025. The restructuring received overwhelming support, with over 95% of Bondholders and Banks voting in favor as a single class. This outcome underscores the effectiveness of building inter-creditor consensus and highlights AO Shearmans capability to craft and implement pragmatic solutions for large-scale, complex cross-border restructurings. The successful completion of this restructuring not only alleviated Shimaos financial distress but also positioned the firm as a trusted legal advisor within the Greater China real estate sector.