Hong Kong developers Emperor and Lai Sun find relief amid debt pressures
Emperor secures bank approval while Lai Sun negotiates asset sales as they work to ease debt pressures
Emperor International Holdings has secured bank approval to resume borrowing under existing terms by nearly two years, providing the embattled Hong Kong developer with much-needed breathing room after it failed to meet HK$16.6 billion (US$2.13 billion) in debt obligations in July.
Meanwhile, shares of Lai Sun Development (LSD) resumed trading on the Hong Kong stock exchange on Friday, after the firm said it was negotiating a potential asset sale alongside its parent company, Lai Sun Garment (LSG). As of July, LSD reported total borrowings of about HK$25.38 billion.
These filings showed the progress made by debt-laden Hong Kong developers in obtaining flexibility as they strived to reduce their financing obligations.
Emperor would “enjoy greater financial flexibility until at least July 31, 2027, to accommodate its future business development, which represents an important milestone in the group’s financial management,” said chairwoman Semon Luk Siu-man in the filing.
The agreement with the banks “demonstrates full confidence … towards the group’s outlook and creditworthiness”.
In July, Emperor disclosed that its losses for the financial year ending in March widened 11 per cent to HK$2.32 billion due to a fair value loss and losses from discontinued operations.