Market Chatter: Banks Move to Seize Sheraton Hong Kong Hotel After Shimao Loan Default
A group of lenders is preparing to take control of a Sheraton-branded hotel near Hong Kong's airport after owner Shimao Group Holdings (HKG:0813) defaulted on a HK$4.5 billion ($575 million) loan late last year, Bloomberg News reported Friday, citing people familiar with the matter.The 1,200-plus-room property is at the center of advanced talks to appoint receivers, allowing banks to accelerate a sale and recover funds, the people told the media outlet. Original lenders to the project include HSBC (HKG:0005), Bank of China (Hong Kong) (HKG:3988), and Bank of East Asia (HKG:0023), the report said.Shimao has yet to respond to MTNewswire's query as of press time.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)