New World Development is in preliminary discussions with some of its banks to extend an about 88 billion Hong Kong dollar loan, worth about 11.2 billion dollars, by two years, Bloomberg reported, citing people familiar with the matter. The company would repay 10 percent of the principal as part of the plan and aims to complete the extension by January.
The extension needs unanimous lender consent, and it is the precondition for a rights issue that could be announced as soon as November. The Cheng family, which controls New World, has been floating equity injection proposals for months, and the rights issue would be the clearest sign of family support for a developer that posted a 3.6 billion dollar loss for its latest fiscal year.
The loan was put in place in Hong Kong’s largest ever debt refinancing in 2025, which pushed back about 63.4 billion Hong Kong dollars of borrowings due in 2025 and 2026 by three years. Seeking two more years, barely a year later, shows the 2025 deal bought time without fixing the balance sheet.
Deliberations are ongoing and could still fall through, the report said. This story is single sourced to Bloomberg’s account and is graded C on that basis.