Logan Property Holdings Co Ltd

A Hong Kong court has approved Chinese property developer Logan Group to proceed with its offshore debt restructuring plan worth about 7.5 billion dollars, after the company had been in default for more than four years. The ruling paves the way for Logan to implement a plan that received support from the majority of creditors under a Scheme of Arrangement, with the plan taking effect from August 21, according to documents filed with the stock exchange. Logan was once among the most heavily indebted Chinese property developers and defaulted on its bonds in 2022, before the court dismissed a liquidation petition in early 2024. However, the company may still face liquidity challenges, as China's property sector remains sluggish, and other developers that have completed debt restructurings have previously encountered fresh liquidity problems that forced them into additional proceedings later on.