Linklaters, Commerce & Finance Law Offices and four firms participated in the USD6.68 billion offshore debt restructuring of Chinese property developer Yuzhou Group.
After three years, the restructuring plan has been approved by Hong Kong’s High Court, the Grand Court of the Cayman Islands and regulatory authorities in mainland China. The transaction involves various types of offshore debt, including US dollar notes, perpetual bonds and syndicated loans.
Against the backdrop of ongoing pressure in China’s real estate market, Hong Kong-listed Yuzhou Group estimated that around USD3.5 billion of offshore debt was reduced through restructuring. Yuzhou joins a list of Chinese property developers that have conducted large-scale offshore debt restructurings, shifting their solution from debt rescheduling to debt reduction.
Linklaters advised Yuzhou Group on US, English and Hong Kong law, with a team led by partner William Liu and counsel Jiang Shan. Commerce & Finance’s partner Sheng Yanhui acted as Yuzhou Group’s PRC legal counsel. Harneys advised on Cayman Islands law.
Latham & Watkins advised the bank syndicate of Yuzhou Group, with Howard Lam as the lead partner. Kirkland & Ellis counselled the ad hoc group of noteholders, with partners Neil McDonald, Lim Wei-yang, Anthony Wijaya and Sean Zhang among the team. Zhong Lun Law Firm advised the noteholders on PRC law, led by partners Zhang Decai, Nelly Zhang, Wang Lijuan and Lin Xiuling.