Linklaters advises Chinese real estate developer Golden Wheel Tiandi on its offshore bond restructuring

Linklaters acted as international legal counsel for Golden Wheel Tiandi Holdings Company Limited (Golden Wheel Tiandi), on the restructuring of its three offshore US dollar bonds with an aggregate principal amount of approx. US$445m, by way of a scheme of arrangement in the Cayman Islands (Cayman Scheme). This is the first offshore debt restructuring of a Chinese property developer arising from the recent crisis in the Chinese real estate market that has been successfully implemented through a Cayman Scheme.

Working alongside the financial advisory teams, Linklaters was involved in strategic planning and commercial negotiations at all key stages of the restructuring process. The Linklaters team was also responsible for the drafting and reviewing of all bond restructuring documents from a New York law, English law, Hong Kong law and PRC law perspective, including the highly innovative onshore and offshore credit enhancement documents.

The successful implementation of this debt restructuring has provided Golden Wheel Tiandi with a sustainable capital structure, which is expected to provide long-term value to all of its stakeholders.

The Linklaters team was led by Asia Managing Partner William Liu, capital markets partner Sherry Cui and restructuring partner Andrew Payne, with support from managing associate Diantha Ho and associate Min Hui Chan. 

Linklaters’ Asia Managing Partner William Liu, commented:

“Linklaters has a long-standing reputation for its professionalism and capability in debt crisis management and restructuring. This bond restructuring project once again demonstrates the firm’s strength in efficiently handling complex and challenging cross-border debt crises.”