Sheraton, Four Points hotels restructure project loans

Shimao Group Holdings’ shares will remain suspended.

Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton Hong Kong Tung Chung Hotel have entered into an agreement to restructure its existing project loan facilities.

In a bourse filing, real estate company Shimao Group Holdings also shared that they are “actively pushing forward” with the proposed restructuring of its loans.

The Tung Chung Hotels may also form part of asset packages as supplemental credit enhancement for Shimao Group’s proposed restructuring of its loans, according to Shimao Group, whose shares have been suspended from trading since April 2022.

Trading of Shimao Group’s shares will remain suspended until further notice, the group said.

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Creditors of Shima Group include a group of holders of its US dollar denominated senior notes (AHG), a coordination committee comprising various offshore banks which hold a portion of the group’s debt (CoCom), and their respective advisors.

It added that it has circulated draft restructuring proposals to advisors of the creditors.

“The company and its advisors are working diligently with advisors of the CoCom and the AHG to facilitate their due diligence exercise in understanding the latest operations of the group and to verify the validity of the restructuring proposals put forth by the company,” Shimao Group wrote in the bourse filing. 

“The parties are working to narrow differences on various economic terms among various groups of creditors contemplated under the restructuring proposals."