(Bloomberg) -- Chinese developer Logan Group Co.’s revised $8 billion offshore restructuring plan may reduce the funding available for cash payouts to creditors, according to people familiar with the matter, citing a draft of the proposal.
Under the terms offered to an ad-hoc group of creditors, which are subject to change, the company would offer a total of $100 million for creditors choosing a cash payment option, down from $190 million in an earlier version of the plan, the people said.
The cash payout would remain $15 for every $100 in principal, according to two people familiar with the matter. But the shrinking of the funding pool would mean some creditors would need to choose other options.
Another term under discussion would increase the conversion price for mandatory convertible bonds from HK$3 for creditors who choose that option, the people said.
Meetings will be held over the weekend to discuss the terms, the people added.
Logan and the ad-hoc group declined to comment.
Logan, which has more than 150 residential developments in China, according to its website, has been working to gain a key bondholder group’s backing for the plan, Bloomberg reported earlier. Its restructuring process has stretched over years, marked by periods of progress as well as setbacks.
The restructuring would involve $6.65 billion of offshore debt, including $3.37 billion of dollar notes, the company said earlier this year, as well as a separate $1.3 billion shareholder loan.
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