New World Bondholders Want More Disclosure on Financing Plans

New World Development Co. bondholders are growing frustrated with the level of financial disclosure by the cash-strapped developer as it prioritizes communication with banks during critical loan talks.

The distressed Hong Kong builder has less than three weeks to complete an HK$87.5 billion ($11.2 billion) loan refinancing deal before a covenant waiver expires at the end of the month. Debt advisers, meanwhile, have said that they think a liability management exercise on the bonds would be the only way for New World to preserve equity value, and are urging noteholders to band together to resist any such move.