The restructuring comes amid the Chinese real estate crisis and represents a key component of Sino-Ocean Group’s broader recovery strategy, which also included an inter-conditional, parallel scheme of arrangement in Hong Kong and a cross class cram down of creditors, a tool not readily available in other jurisdictions. The English court’s approval highlights the innovative and precedent-setting nature of the plan, which allowed state-owned enterprise shareholders to retain a stake in the newly restructured group – a novel move that boosted the value of the group while setting new standards in cramming down in-the-money creditors. This approach enabled existing shareholders to retain a material proportion of equity in the restructured company, redefining possibilities under an English Restructuring Plan.
The successful completion of Sino-Ocean Group’s restructuring establishes an important precedent for other PRC real estate companies considering offshore debt restructuring initiatives. Appleby’s role underscores its reputation for handling complex, high-stakes transactions and delivering cutting-edge legal solutions.
This landmark project was led by David Bulley, Managing Partner of Appleby’s Hong Kong and Mainland China offices, alongside Partner Lorinda Peasland, who oversaw all aspects of the debt restructuring. Partner Fiona Chan provided specialised guidance on the financing components of the transaction.
Appleby remains committed to delivering unparalleled legal expertise and innovative strategies for its clients, reinforcing its position as a leading global law firm in offshore jurisdictions.
