Cifi creditors approve US$7.9 billion offshore debt restructuring plan

The group’s offshore debt obligations will decrease by around US$5.3 billion, or 66 per cent of the total, according to the company

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The headquarters of Cifi Holdings in Shanghai. Photo: Handout

Published: 1:30pm, 4 Jun 2025

Distressed Chinese developer Cifi Holdings won backing from a majority of creditors for a US$7.9 billion offshore debt revamp, a key step for the cash-strapped developer as China’s property market shows little sign of recovery.

According to a Wednesday stock exchange filing, 1,236 out of 1,250 creditors, holding US$7.3 billion of Cifi’s US$7.9 billion in offshore debt, voted in favour of the developer’s latest debt restructuring plan.

Taking into account the amount of claims to be cancelled or converted into mandatory convertible bonds and then converted into shares, the group’s offshore debt obligations will decrease by around US$5.3 billion, or 66 per cent of the total, the company said. Court approval for the restructuring will be decided at a hearing in Hong Kong on June 26.

“The completion of the proposed restructuring will significantly alleviate the group’s liquidity pressure and provide it with a sustainable capital structure,” Cifi said in the filing, adding that in the long term, it would switch to an asset-light business model to “survive the profound adjustment cycle of China’s property development industry”.

Signage for Cifi Holdings. Photo: Handout

Cifi shares rose 2.07 per cent to HK$0.25 (US$0.03) before noon. The stock has lost 97 per cent of its value since the peak in 2021, when Beijing’s “three red lines” policy – a nationwide campaign to tame developer debt – triggered a multi-year slump in the property sector.