Legal Services
Aoshearman
Full Credential Description
Sino-Ocean Group faced significant challenges regarding liquidity and funding in its real estate development business, leading to the suspension of payments on its offshore debt in September 2023. This situation necessitated a comprehensive restructuring of its offshore debt, which was coordinated by a committee of bank lenders (the CoCom) with the legal support of AO Shearman. The tailored solution involved a dual restructuring approach: an English restructuring plan under Part 26A of the U.K. Companies Act 2006 and a parallel scheme of arrangement under the Hong Kong Companies Ordinance. This innovative strategy was particularly notable as it was the first English restructuring plan to include a cramming class composed solely of foreign law-governed debt, with concurrent processes in both jurisdictions to ensure the restructurings effectiveness. Despite facing legal challenges from a bondholder, both the English Restructuring Plan and the Hong Kong Scheme were successfully sanctioned by the High Court of England and Wales and the High Court of Hong Kong. This landmark restructuring not only addressed the immediate financial distress of Sino-Ocean Group but also set a precedent in the real estate sector, showcasing the collaborative efforts of the Group and its advisers, as well as the CoCom. The successful execution of this restructuring highlighted AO Shearmans capability to provide integrated legal advice across multiple jurisdictions, leveraging their global network of restructuring experts and advanced project management solutions.