New World’s refinancing — which would be one of the largest of its kind ever in Hong Kong — marks the end of months-long negotiations for a debt package that would pull it from the brink of default. The deal would push back HK$63.4 billion of borrowings that were set to come due this year and next, extending the maturities for three years, Bloomberg reported earlier.
Distressed Hong Kong builder New World Development Co. has secured written commitments from all banks for a HK$87.5 billion ($14.2 billion) loan refinancing, people familiar with the matter said, bringing it closer to finalising a critical lifeline just days before a deadline.
The next procedural step to formally conclude the transaction is for lenders to sign the loan documents, according to the people. They expect that to happen shortly. Documentation showed that if New World didn’t achieve a 100% approval by June 30, the deal could fall through as any collateral pledged would be released and bank commitments cancelled.
