Chinese Developer Sino-Ocean Gains 12-Day Breather on Liquidation in Hong Kong, as Majority of Loan Creditors Back Restructuring Plan

Sino-Ocean, a Chinese developer, has been granted a 12-day delay on its liquidation proceedings in Hong Kong. The case has been postponed until September 23. According to the developer, 75 percent of its loan creditors are in agreement with its plan for restructuring.

The Hong Kong High Court has granted Chinese developer Sino-Ocean Group, which has defaulted, an additional 12 days to garner backing for its restructuring plan. This comes as the court postponed a liquidation hearing against the company on Wednesday.

On Wednesday morning, Judge Jack Wong postponed the case until September 23. This delay allows the developer time to convince creditors to agree to the restructuring plan they proposed in July. The plan aims to handle their US$5.6 billion debt.

The approval of 75% may pave the way for a UK court to be the next arena for the escalating conflict between the firm and some of its key creditors. The hearing on Wednesday in Hong Kong was the initial one since the Bank of New York Mellon's London branch, a representative for bondholders, submitted a request for liquidation in June for a debt and accumulated interest worth US$400 million.

In July, Sino-Ocean, a company based in Beijing, revealed its belated recovery plan after it failed to pay its debts almost a year ago. The plan organizes creditors into four categories, placing those who gave loans in one category, while dividing bondholders into three separate groups.