(Yicai) Jan. 15 -- Logan Group’s shares rose after the Chinese property developer said that 51 percent of its creditors have approved the firm’s proposal to restructure its offshore debt.

Logan [HKG: 3380] closed 5 percent higher at 63 Hong Kong cents (8 US cents) a share, after surging by as much as 16.7 percent intraday. The stock has lost nearly 95 percent of its valueover the past three years.

Creditors holding USD3.4 billion of Logan's offshore senior notes, or 51 percent of the total, agreed to the Shenzhen-based firm’s workout plan, approaching the needed three-quarters, it said in a Jan. 12 bourse filing. Logan offered creditors four options to pare it liabilities along with lower interest rates. 

Logan had USD6.6 billion of offshore debt as of June 30, and the company has not yet repaid USD1.3 billion of loans from its controlling shareholder, according to publicly available information.

The company has said the goal is to lighten its debt burden by USD2.6 billion to USD3 billion so as to fix its capital structure and enable production and operations to enter a virtuous cycle.

Last year, Logan mitigated its liquidity issues by speeding up the recovery of days sales outstanding, while reducing expenses and revitalizing its asset structure. It delivered over 53,000 apartment units to buyers in 2023.

Editors: Tang Shihua, Emmi Laine