London's High Court greenlit Chinese property developer Sino-Ocean Group's (HKG:3377) plan to restructure $6 billion of offshore debt, overriding objections from creditor Long Corridor, Reuters reported Monday.
Sino-Ocean Group is navigating a dual restructuring process in London and Hong Kong amid China's property sector crisis, according to the report.
Opposition came from creditor Long Corridor, which claims the move unfairly favored shareholders, including state-owned China Life and Dajia Insurance Group, which each hold a roughly a 30% stake, Reuters wrote. Meanwhile, Sino-Ocean argued maintaining at least 15% ownership for these entities was vital to its status as a state-owned enterprise and its survival in China's property market.
In his ruling, Judge Nicholas Thompsell said retaining these stakes "increases the value of the plan" for all creditors, according to the report.
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