Property developer New World Development said on Sunday its board has proposed a recapitalisation plan aimed at raising about HK$24.9 billion, according to company filing.

The plan offers shareholders 11 new shares for every existing share at HK$0.90 each.

The company plans to use the proceeds to prepay 10 percent of about HK$82 billion in bank loans and extend the maturity of the remaining 90 percent by two years.

Controlling shareholder Chow Tai Fook, which owns about 45.3 percent of the company, has committed to take up its full entitlement, while the remaining shares will be fully underwritten.

New World Development has been trying to cut debt, dispose of assets and bolster liquidity amid tight credit conditions and a weak property market. (Reuters)



Edited by Edmond Fong