Appleby Advised Sino-Ocean Group On Revolutionary Offshore Debt Restructuring
Appleby Advised Sino-Ocean Group On Revolutionary Offshore Debt Restructuring
The Plan addressed USD6 billion of debts
International law firm, Appleby has announced its role as Cayman and BVI counsel to a Chinese property company, Sino-Ocean Group Holding Limited.
The restructuring under the English Companies Act 2006 makes it the first Chinese property group to be streamlined using an English Restructuring Plan.
Addressing USD 6-billion of offshore debts, the innovative restructuring comes amid the Chinese real estate crisis.
It represents a key component of Sino-Ocean Group’s broader recovery strategy, including 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 has set a precedent, allowing state-owned enterprise shareholders to retain a stake in the newly restructured group. The novel move boosted the group’s value and set new standards for the money creditors.
It enables the existing shareholders to retain a material proportion of equity in the restructured company, redefining possibilities under an English Restructuring Plan. It also establishes an example 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. It remains committed to deliver unparalleled legal expertise and innovative strategies to its clients, reinforcing its position as a leading global law firm in offshore jurisdictions.
The Appleby team was led by David Bulley, Managing Partner (Hong Kong and Mainland China offices) and Partner Lorinda Peasland, who oversaw debt restructuring aspects. Partner Fiona Chan guided on financing components.
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