Hong Kong developer NWD denies rumours of scramble to manage debt, secure equity financing
The developer, which has been battling liquidity problems for the past three years, makes a statement in response to media reports
“Shareholders, holders of the debt and other securities, and potential investors are advised not to rely on market rumours in relation to the group,” NWD said in the filing.
A liability-management exercise in the bond market refers to a set of techniques an issuer uses to restructure or optimise outstanding debt before maturity to improve its balance sheet, manage refinancing risks or amend bond terms.
In June, Bloomberg reported that debt adviser PJT Partners had talked with some of NWD’s bondholders about the possibility that the firm would pursue discounted exchanges as part of a potential liability-management exercise. The distressed developer had deferred some interest payments and chose not to redeem some of its perpetual bonds earlier this year, heightening concerns about its liquidity.