Hong Kong-based Logan Group has proposed restructuring its $8 billion offshore debt, Reuters reported.

(Reuters) – Hong Kong-based developer Logan Group said on Monday it was submitting a restructuring proposal for its value of about $8.01 billion of offshore debt, including converting offshore lenders into mandatory convertible bonds.

Logan Group is seeking to restructure $7.56 billion of its total offshore debt, while also seeking to relieve creditors of an additional $476 million in offshore debt through separate financial instruments.

In August, the Chinese developer announced that It has secured an $8.2 billion ($1.05 billion) loan to refinance part of this outstanding debt in 2021 as it struggles to recover from the collapse of the property sector.

Under the massive debt restructuring proposal, the offshore lenders will be structuring the debt through cash, mandatory convertible bonds (MCBs), long-term notes or MCBs and short-term bonds. Notes have the option to convert.

In the year With defaults due in August 2022, Logan Group said the restructuring proposal is aimed at easing the company’s debt burden and restoring its capital structure.

($1 = 7.7785 Hong Kong dollars)