Shimao Announces Cross-Default on $9.068 Billion in Offshore Debt
Shimao announced a cross-default on $9.068 billion in offshore debt following the expiration of a 60-day deadline for a winding-up petition without a stay, adding that it has received no repayment demands.
Chinese property developer Shimao Group announced a cross-default on offshore restructuring debt worth $9.068 billion, according to the website East Money.
The company stated that the defaults began following the expiration of a 60-day period associated with a winding-up petition on October 25, 2026, without an extension of protection or withdrawal of the petition.
Approximately $9.068 billion of the principal debt became immediately due, including $771 million in short-term loans and $1.269 billion in long-term loans.
Shimao added that it has not received any demands for repayment and intends to oppose the winding-up petition.
What Do These Terms Mean?
Cross-default: A clause in a loan agreement that makes a default on one specific debt a reason to automatically consider other debts in default as well.
Winding-up petition: A petition submitted by a creditor to a court seeking the liquidation of a company due to its inability to pay its debts.
Restructuring: Rearranging debt terms, such as maturity dates or interest rates, to enable a company to avoid bankruptcy.
Short-term loans: Debts due for repayment within one year from the date they are obtained.
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