Weil has acted as counsel to the ad hoc group of noteholders in relation to the successful restructuring of more than US$11.5 billion of offshore debt of Shimao Group Holdings Limited (“Shimao”). The restructuring was completed on July 21, 2025, following the sanction of the scheme of arrangement (“Scheme”) by the High Court of Hong Kong on March 13, 2025.

Shimao, a Hong Kong-listed holding company, is a major PRC property development group focused on large scale development of residential, hotel, office and commercial projects across China.

Offshore debt restructuring in China has intensified in recent years amid ongoing stress in the country’s highly leveraged real estate sector. Several major developers have defaulted on offshore obligations, with Shimao standing out as one of the most high-profile and heavily indebted cases. Despite being one of the first situations to enter formal restructuring negotiations, Shimao’s complex corporate and debt structure, coupled with challenging market conditions, led to a prolonged and intricate negotiation process between the company and its multiple creditors.

The Hong Kong-based Weil team, which was involved from the start of this process, was led by Restructuring partner Kathleen Aka and included Minna Zhang, Graham Price and Isolde Tsukabayashi.

“We are proud to have played an instrumental role in helping our clients navigate the challenges and complexity of this restructuring, which has reached successful completion after years of difficult negotiations, court processes and transaction execution. As legal advisers to the ad hoc group, we have had the privilege to work alongside the highly capable team of financial advisers at Houlihan Lokey, and as the leader of this transaction at Weil, I have been fortunate to have the dedicated and unwavering support of an incredible team of lawyers,“ Kathleen commented. “The Weil Asia Restructuring team has yet again demonstrated its ability to get tough transactions across the line, whilst being strong advocates for our clients’ interests.”

The transaction has been recognized as one of the 2025 Deals of the Year by China Business Law Journal, underscoring its significance in the evolving landscape of China’s offshore debt restructurings.