(Aug 24): A Hong Kong court gave Logan Group Co clearance to implement its debt restructuring plan, more than four years after the Chinese developer defaulted in the midst of the country’s property crisis.

Logan, which carried one of the largest debt loads in the industry, has received the court’s blessing to move forward with a plan that drew support from a majority of debt holders under a mechanism known as a scheme of arrangement, the developer said in an exchange filing late Friday.

Logan was one of the many Chinese developers that defaulted during the prolonged real estate downturn, and it became mired in years of back-and-forth with creditors over a restructuring plan. While the court’s go-head, a crucial procedural step, is a boon for Logan, it remains to be seen whether the company can weather challenges brought by the country’s persistently weak property market.

China’s new-home prices fell at a faster pace in July, damping hopes that the property crisis may be nearing a bottom.

A number of other builders that reached this stage later ran into fresh liquidity problems, forcing them to pursue additional restructurings. Sunac China Holdings Ltd., for example, rolled out a new repayment plan last year after completing the first round of restructuring in 2023.

Logan had about US$7.5 billion in offshore debt to be restructured, according to an exchange filing in January 2025.

Its debt proposal took effect on Aug 21 after being sanctioned by the court, according to Friday’s filing.

Two of its units were sued in 2022 by creditors to liquidate after a bond default in the same year. The winding-up petition was dismissed in early 2024 amid progress on the restructuring plan. But talks dragged on for another two years as the company sought to refinance a loan linked to a luxury property in Hong Kong, among other issues.

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