China Builder Logan’s Restructuring Hits Snag as Lenders Revolt

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Chinese developer Logan said Friday that holders of its existing offshore notes are being offered four options, including receiving $15 cash for every $100 of bond principal with accrued interest waived. Photo: Bloomberg

(Bloomberg) — Chinese developer Logan Group Co. Ltd. suffered an unexpected setback just days after progress on its restructuring plan, as bank creditors split with bondholders and threatened to liquidate two key units.

A lawyer representing the banks said the lenders may substitute the bondholders in their original winding-up petition at a Hong Kong court hearing Monday, saying Logan hasn’t provided information requested. A lawyer representing the bondholders told the court they are seeking to dismiss the petition after signing an agreement with Logan.