Shimao Creditor Group Urges Holders to Vote Against Debt Plan

A key creditor group of defaulted Chinese developer Shimao Group Holdings Ltd. has urged all bondholders to reject a restructuring plan proposed by the company, according to an email seen by Bloomberg News, as the standoff between the two sides escalates.

The creditor group will “unequivocally vote against” the restructuring plan, according to the email sent by the group’s financial adviser, Houlihan Lokey Inc., to bondholders on Wednesday. The group holds more than 25% of Shimao’s bonds, according to the email, which is a key threshold of votes needed to block any restructuring plan.

Houlihan confirmed that an email ...