AsianFin -- New World Development Co., controlled by Hong Kong billionaire Henry Cheng, has offered properties valued at $15 billion as collateral to secure loan refinancing, highlighting the mounting financial pressures on the company.

The developer is seeking a three-year credit facility from banks, backed by its prime properties, to refinance HK$58.1 billion ($7.5 billion) in unsecured loans set to mature in 2025 and 2026, according to sources familiar with the matter. This move would reduce the pool of assets available to unsecured bondholders, some of whom have offloaded New World bonds recently, driving them to deeply distressed levels.

New World faces investor skepticism due to its heavy debt load, one of the highest among Hong Kong’s real estate developers. The company has seen leadership instability, with three CEOs appointed in just two months, as it grapples with challenges in stabilizing its operations and maintaining confidence in its flagship properties.