Adrian Cheng leaves New World board as developer averts default in US$11.3 billion funding
The package will ‘allow the group more flexibility to better manage its expected ongoing business and financial needs,’ NWD says
Adrian Cheng Chi-kong, the third generation scion of New World Development (NWD), has left the company after the Hong Kong developer successfully refinanced its debt and concluded months of negotiations that pulled it back from the brink of default.
Cheng resigned as non-executive director of NWD, effective July 1, to “devote more time to public services and other personal commitments,” according to a filing to the Hong Kong stock exchange.
Earlier, NWD said it successfully obtained HK$88.2 billion (US$11.3 billion) in refinancing, including multiple tranches of bank loans with varying maturities, with June 30, 2028, being the earliest.
The package would “allow the group more flexibility to better manage its expected ongoing business and financial needs,” the statement said. “The new bank facility and the aligned bank facilities have terms, including financial covenants and security interests granted over certain of the group’s assets.”
CEO Echo Huang Shaomei said the successful refinancing “is a testament to the confidence” placed in the company’s operations, adding that the group’s financial strategy prioritises reducing debt and improving cash flow.