DEALS
Zhong Lun Assists in USD 11.5 Billion Restructuring of Shimao Group Holdings
Zhong Lun Assists in USD 11.5 Billion Restructuring of Shimao Group Holdings
Zhong Lun advised the co-ordination committee of lenders (“CoCom”) as its PRC legal counsel on the successful restructuring of over USD 11.5bn in offshore debt for Hong Kong-listed Shimao Group Holdings Limited (“Shimao”). This landmark restructuring was achieved through a court-sanctioned Hong Kong scheme of arrangement. According to the announcement made by Shimao, the restructuring effective date occurred on July 21, 2025.
Shimao is a substantial Chinese residential, hotel, and commercial property developer and manager with significant investments in Hong Kong and a complex corporate and debt structure. The group’s operations were severely impacted by multiple factors, leading Shimao to reach out in early 2022 to its bank and bondholder creditors to discuss a general restructuring of its indebtedness. This mandate stands as one of the first major projects where a prominent Chinese property developer engages with its creditors on a structured basis, and due to its complexity, the restructuring took over three years to reach a successful conclusion.
Zhong Lun, as the CoCom’s PRC legal counsel, collaborated closely with its offshore legal counsel and financial advisors to drive forward the general restructuring process. This project was led by Wenyong (Michael) Zhang, a partner of the firm’s Beijing Office, and key team members included non-equity partner Hao Tu.
In addition to Shimao, Zhong Lun has also participated in the offshore debt restructuring of many other large-scale real estate companies, including the offshore debt restructuring of Sino-Ocean Group Holding Limited that was sanctioned by the Hong Kong court this year. Meanwhile, Zhong Lun is participating in the debt restructuring of several multinational companies under extraterritorial laws, including those conducted under Chapter 11 of the United States Bankruptcy Code.
