KWG Group (HKEX: 01813) has announced that on June 15, 2026, the company entered into a restructuring support agreement with certain initial participating creditors.
These initial creditors include members of an ad hoc group of noteholders who collectively hold over 26.1% of the total outstanding principal amount of the debt to be included in the restructuring, as detailed in the term sheet. The agreement outlines the terms of the proposed restructuring.
The intended restructuring aims to provide the company with a long-term path to stabilize its business, achieve a sustainable capital structure and enhance its net asset value, and protect the interests of all stakeholders while maximizing value.
Broad support is deemed essential for the success of the restructuring. The company urges all holders of the debt to be restructured who have not yet signed the agreement to join it promptly.
This agreement represents a significant milestone in the company's restructuring process. KWG Group expressed its sincere gratitude to the ad hoc group of noteholders and their advisors for their ongoing support and active participation.
The company intends to implement the restructuring through a scheme of arrangement in Hong Kong and/or the Cayman Islands, along with any other corporate actions, legal or other proceedings deemed necessary by the company and its advisors.
A scheme of arrangement is a statutory mechanism allowing a relevant court to sanction a compromise or arrangement voted on and approved by the requisite majority of relevant creditor classes. It is not a liquidation proceeding.
The company expects to commence the process to implement the restructuring as soon as practicable under the terms set out in the agreement.
The restructuring plan covers the company's offshore debt, with a total principal amount of approximately $4.833 billion. This includes $3.956 billion in senior notes, $380 million in syndicated bank loans, and $497 million in liabilities under other loan facilities borrowed or guaranteed by the company, collectively referred to as the "in-scope debt."