London's High Court has approved Chinese property developer Sino-Ocean Group's restructuring plan for around $6 billion of its debt, despite opposition from a group of creditors. The state-backed company is undergoing a parallel restructuring process in London and Hong Kong due to defaults seen among other developers during the 2021 Chinese property sector debt crisis.
Although creditor Long Corridor had contested the plan, stating it favored certain shareholders, including state-owned China Life and Dajia Insurance Group, who each hold around 30% of Sino-Ocean, the Court ruled in favor of the London restructuring plan. Sino-Ocean emphasized the importance of China Life and Dajia maintaining a 15% stake each to retain its status as a Chinese state-owned enterprise, critical for its operations as a property developer in China.
In rendering his decision, Judge Nicholas Thompsell noted that the retention of a 15% stake by China Life and Dajia in Sino-Ocean "actually increases the value of the plan" for all classes of creditors.