Hong Kong's New World quashes rumours that it’s in holistic debt restructuring talks
20 Jan 2025, 08:34 pm
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(Jan 20): Hong Kong property firm New World Development Co said that it hasn’t been in or started any talks on an overall debt restructuring, as distress deepens across more builders in Greater China.

The company is aware “there have been certain market rumours and speculations in relation to the group having commenced discussions on a holistic debt restructuring of its existing financial indebtedness, including its bonds”, it said in an exchange filing on Monday. 

New World “wishes to remind shareholders and investors that the contents of such market rumours and speculations do not accurately reflect the overall status of the Group’s existing financial indebtedness”, it said.

Controlled by the family empire of tycoon Henry Cheng, New World is the builder of projects including the 11 Skies commercial complex next to Hong Kong’s airport, as well as the iconic K11 Art Mall in the shopping district of Tsim Sha Tsui. 

The company is one of the most closely watched property firms due to its high leverage amid a prolonged property downturn. Late last year, New World asked banks to postpone the due dates of some bilateral loans, a move that deepened concerns over its ability to service one of the heaviest debt loads of its kind.

New World earlier on Monday was headed for record declines in the dollar bond market, with some notes falling as much as around 20 cents, traders said.  

Uploaded by Tham Yek Lee

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