How Shimao’s sale of 2 hotels reveals the growing complexity of Hong Kong debt workouts

The HK$2.7 billion (US$344 million) sale of two Shimao Group hotels in Hong Kong leaves an estimated HK$1.8 billion shortfall against their secured loans.

Still, receivers managed to squeeze out improved bids in the final stages, with all shortlisted parties improving their offers, said Una Ge, a managing director at AlixPartners who oversaw the sale as a joint receiver.

The deal offers a glimpse into how mainland China’s developer debt crisis is reshaping Hong Kong’s restructuring industry, bringing vastly larger debt burdens, cross-border contagion risks, and increasingly complex creditor syndicates.

  

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