Latest news with #loanrefinancing
Yahoo
6 hours ago
- Business
- Yahoo
New World's $11B Lifeline: Will Hong Kong's Most Indebted Developer Survive the Countdown?
New World Development (NDVLY) is inching closer to sealing a massive HK$87.5 billion ($11.1 billion) loan refinancing, potentially giving the debt-laden Hong Kong builder some much-needed breathing room. After months of tense negotiations with over 50 lenders, people familiar with the talks say the company has now secured preliminary consent from all partiesincluding banks that had initially pushed back. But there's still a clock ticking: written approvals must land by June 30, or the deal could unravel entirely. Warning! GuruFocus has detected 8 Warning Signs with NDVLY. If finalized, the agreement would extend HK$63.4 billion ($8.1 billion) in near-term maturities to 2028, easing immediate pressure on New World's balance sheet. Roughly 40 assetsincluding New World Tower and the prized Victoria Docksidehave been pledged as collateral to secure the deal. Another HK$24.1 billion in longer-dated loans will remain on their original timelines, though with added credit enhancements and stricter collateral terms. The refinancing comes as part of a broader fight for survival, with investors increasingly concerned about the company's ability to navigate Hong Kong's prolonged property downturn and rising debt costs. The company isn't stopping there. New World is also seeking a separate HK$15.6 billion loan backed by Victoria Dockside, testing whether it can still tap fresh capital markets amid growing skepticism. Earlier this year, the developer delayed interest payments on four perpetual notes, triggering a sharp selloff in its dollar bonds. While this refinancing could help buy time, the path forward may still be rockyand investors are watching closely to see whether the firm can stabilize, or if this lifeline is just a pause before the next storm. This article first appeared on GuruFocus.
Bloomberg
10 hours ago
- Business
- Bloomberg
HK Builder New World Nears $11 Billion Loan Refinancing Deal
New World Development Co., one of Hong Kong's most indebted builders, is close to securing a crucial HK$87.5 billion ($11.1 billion) loan refinancing deal, according to people familiar with the matter, the culmination of months of negotiations as it raced to secure a lifeline amid a deepening liquidity crisis. New World has received preliminary consent from all the lenders for the refinancing deal, even from those that had previously resisted, the people said, asking not to be identified discussing private matters. A few of the banks are still working on formal written commitments, the people added.
Bloomberg
7 days ago
- Business
- Bloomberg
New World's $11 Billion Refinancing Gambit Must Get 100% Support
As distressed Hong Kong builder New World Development Co. gathers more support from banks for its targeted HK$87.5 billion ($11.1 billion) loan refinancing, a key part of the terms shows that it must get 100% in commitments, or the deal will fall through. Documentation for the potential borrowing shows that if New World doesn't achieve a 100% approval rate by June 30, any collateral pledged would be released and bank commitments canceled, people familiar with the matter said.
Bloomberg
12-06-2025
- Business
- Bloomberg
New World Gains Support for 87% of Loan Refinancing From Banks
By Apple Ka Ying Li and Save New World Development Co. has received more backing from banks for its HK$87.5 billion ($11.2 billion) loan refinancing, giving it written commitments for 87% of the total, according to people familiar with the matter. That means it has secured HK$76.1 billion of commitments as it races to complete the deal with more than 50 banks by the end of the month, when a covenant waiver on its existing facilities expires. The latest tally marks continued progress for the distressed Hong Kong builder. As of May 30, New World had secured written commitments from over 20 banks for 60% of the total target, Bloomberg reported.
Bloomberg
12-06-2025
- Business
- Bloomberg
New World Bondholders Want More Disclosure on Financing Plans
New World Development Co. bondholders are growing frustrated with the level of financial disclosure by the cash-strapped developer as it prioritizes communication with banks during critical loan talks. The distressed Hong Kong builder has less than three weeks to complete an HK$87.5 billion ($11.2 billion) loan refinancing deal before a covenant waiver expires at the end of the month. Debt advisers, meanwhile, have said that they think a liability management exercise on the bonds would be the only way for New World to preserve equity value, and are urging noteholders to band together to resist any such move.
