An announcement has been issued by SHIMAO GROUP (00813). The company's board of directors informs shareholders that a wholly-owned indirect subsidiary, which is a party to certain project loans secured by mortgages and charges over properties including the currently named Hong Kong Tung Chung Sheraton Hotel and Hong Kong Tung Chung Four Points by Sheraton Hotel (collectively, the "Hotels"), has seen the appointment of receivers.

The board notes that Ms. Jun Ge and Mr. Patrick BANCE of AlixPartners Hong Kong, Limited and its affiliates have been formally appointed by the security agent (for the benefit of the secured creditors) as joint and several receivers and managers of the Hotels, effective from June 1, 2026. This appointment was made pursuant to a debenture and mortgage agreement between the relevant group subsidiary, as chargor, and the security agent. The agreement secures a syndicated loan facility originally dated July 27, 2020, and subsequently amended and restated by a supplemental deed dated June 28, 2023.

The board is aware of this appointment and fully supports an orderly and transparent process to ensure transactional certainty and provide a viable pathway for a successful sale. Management has been cooperating fully with the receivers and believes a professionally managed sale process serves the best interests of all stakeholders. The receivers have informed the board that the daily operations of the Hotels remain unaffected.

The board has further been advised that the receivers have engaged an international real estate agency to assist with a formal marketing campaign for the sale of the Hotels, with the aim of maximizing recoverable value for all relevant parties.