January 16, 2024
Weil has acted as counsel to the ad hoc group of bondholders in relation to the restructuring of more than US$6 billion of offshore debt of China Aoyuan Group Limited and its subsidiary, Add Hero, including over $3 billion of offshore bond debt. The restructuring reached a significant milestone last week when the innovative dual and parallel schemes of arrangement were approved by the Hong Kong court and recognized by the U.S. Bankruptcy Court, following sanction of the schemes by courts in the Cayman Islands and British Virgin Islands in December. The ruling by Judge Jonathan Harris in the High Court of Hong Kong was reached after a two-day trial.
Aoyuan is a leading commercial and residential property developer that focuses on the Guangdong-Hong Kong-Macao Greater Bay Area and covers four major regions in the PRC.
The Weil team was led by Hong Kong Restructuring partner Kathleen Aka and included Banking & Finance counsel Graham Price and Restructuring associate Minna Zhang. Kathleen commented on having reached this milestone in the process:
“In our role as legal adviser to the ad hoc group of bondholders, we have been fortunate to work closely with Aoyuan and its advisers, as well as Moelis as financial adviser to the ad hoc group. We are pleased that the restructuring has reached this significant milestone. It is an achievement for Aoyuan and its creditors, and serves as a blueprint for other China real estate situations. The process has been conducted professionally and cordially, with advisers focused on progressing the transaction efficiently whilst protecting respective client interests.”