China Aoyuan Group is standing by for a pivotal Hong Kong court decision on its restructuring plan, a ruling that may accelerate the end of its tussles with creditors over US$6 billion of offshore debt.
After a two-day trial over a creditor’s objection to the offshore plan offered by the defaulted developer ended earlier this week, Judge Jonathan Harris said he will deliver his decision on Thursday.
Harris’ approval would enable the Guangzhou-based developer to clear a major hurdle in appeasing creditors and quickly shift to implementing the settlement terms. A denial would send Aoyuan back to negotiations with creditors that may drag out its two-year saga since its first default and further sap precious resources.
Any early rulings from the city’s courts are closely watched given the slow pace of negotiations of Chinese developers, and may set legal precedents impacting bigger trials such as for China Evergrande Group.
