PRESS RELEASE
27 March 2025

Pivotal USD11.5 Billion Restructuring Of Shimao Group Holdings Successfully Completed

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
A&O Shearman proudly advised the co-ordination committee of lenders (CoCom) on the successful restructuring of over USD11.5bn in offshore debt for Hong Kong-listed Shimao Group Holdings Limited (Shimao).
United States

A&O Shearman proudly advised the co-ordination committee of lenders (CoCom) on the successful restructuring of over USD11.5bn 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.

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 the COVID-19 pandemic and the distress being experienced by the real estate sector in Mainland China, leading Shimao to reach out in early 2022 to its Bank and Bondholder creditors to discuss a general restructuring of its indebtedness. This was one of the first major Chinese property developers to engage with its creditors on a structured basis, and due to its complexity, the restructuring has taken over 3 years to implement.

A&O Shearman, as the CoCom's legal advisors, collaborated closely with Shimao and the Ad Hoc Group of Bondholders (AHG) and their advisers on a holistic restructuring process. This process also recognized the need for several discrete project and asset-based bank debt refinancings. A&O Shearman played a pivotal role in structuring the deal and facilitating lengthy negotiations among the Company and other stakeholders, including the AHG. These efforts culminated in the Hong Kong Court's sanctioning of the restructuring scheme on March 13, 2025.

Viola Jing A&O Shearman partner commented "The Shimao Group restructuring, one of the earliest and most protracted in the recent wave of Chinese property developer restructurings, has ultimately received overwhelming support (over 95%) from Bondholders and Banks alike, voting as a single class. This restructuring highlights the benefits of building inter-creditor consensus and showcases our team's ability to craft, facilitate, and implement effective and pragmatic solutions for large-scale, complex cross-border restructurings. This transaction yet again demonstrates our capabilities as a full-service global firm and as the trusted legal adviser to creditors and other stakeholders in the Greater China real estate sector and beyond.

The core A&O Shearman team was led by Hong Kong-based partner, Viola Jing, with support from Ian Chapman (consultant, Hong Kong), Leona Healey (registered foreign lawyer, Hong Kong), Oliver Saunders (registered foreign lawyer, Hong Kong), Jack Kwan (associate, Hong Kong), and Tomson Pong (associate, Hong Kong). Additional support was provided by Yvonne Ho (partner, Beijing), Kyungwon Lee (partner, Hong Kong), Agnes Tsang (partner, Hong Kong), Jonathan Hsui (partner, Hong Kong), James Yao (partner, Hong Kong), Hae-Ran Song (of counsel, Hong Kong), Karen Chan (of counsel, Hong Kong), Jiayin Yu (registered foreign lawyer, Hong Kong), Kylie Wong (Peerpoint legal consultant, Hong Kong), Rami Marginean (senior associate, Singapore), Fion Lo (senior associate, Hong Kong), Gwyneth Lau (associate, Hong Kong), and Peggy Zeng (associate, Beijing).

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
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