Chinese property developer New World Development has agreed to refinance HK$88.2bn ($11.24bn) of debt, the company said in a statement.
Specifically, the developer partially refinanced unsecured non-Juanese debt, including bank loans, and adjusted the terms of the remaining loan agreements.
The refinancing involves a series of tranches of bank loans with different maturities, the earliest of which is 30 June 2028.
New World chief executive Huang Shaomei said the company’s financial management strategy involves a focus on reducing debt and improving cash flow.
New World’s debt refinancing agreement is one of the largest in Hong Kong, Reuters writes. Negotiations over it had been going on for months. The company was on the verge of default, its debt load is one of the highest in the sector.
Earlier in June, the agency, citing sources, reported that New World paid interest on dollar bonds. Prior to that, the developer had warned that it would delay scheduled June coupon payments of $77.2m on four perpetual bond issues.
Last year, a Hong Kong court approved the liquidation of property developer China Evergrande, which had more than $300bn in debt.