Linklaters advises China Aoyuan Group on the sanction of schemes of arrangement

Linklaters has acted as international lead counsel for China Aoyuan Group Limited’s restructuring of its offshore debt liabilities. The China Aoyuan Group Limited (Aoyuan) is a leading commercial and residential property developer which focuses on the Guangdong-Hong Kong-Macao Greater Bay Area and covers four major regions in the PRC. 

The sanction of the China Aoyuan Schemes and the Add Hero Schemes by the Courts of Hong Kong SAR, Cayman Islands and the British Virgin Islands is a significant milestone towards the holistic restructuring of Aoyuan’s material indebtedness. It demonstrates Aoyuan’s continued efforts to protect the interests of all stakeholders of the company, and to maintain Aoyuan’s overall ability to deliver its projects on schedule and safely as well as to continue its business operations.

Linklaters advised Aoyuan in negotiations with its stakeholders and the implementation of an innovative dual and parallel scheme approach, which facilitates the restructuring of the material financial indebtedness of Aoyuan and, its immediate subsidiary, Add Hero. 

The Linklaters team was led by partners William LiuAndrew PayneDenise Fung, Taiki Ki, Maggie Ng and Christopher Hunker supported by counsel Jiang ShanChristian Felton, Diantha Ho, Bernard Ng and Mark Dawson as well as managing associates Kenneth Kong, Wendy Ding, Yin Shuopeng (Senior US Associate), Elio Cunico and Vivien Li.

Linklaters’ Asia Managing Partner, William Liu, commented,

“We are delighted to have acted as international lead counsel for Aoyuan on this landmark development. Our team has been closely involved with all key stages of the restructuring process and have engaged closely with the ad hoc group of public noteholders and a coordinating committee of syndicated lenders as well as their advisors to formulate a deal that benefits all stakeholders, leading to the launch of the Schemes. We would like to extend our heartfelt congratulations to the Aoyuan team as well as all the advisors we collaborated with.”