Hong Kong's Hotelier seeks covenant waiver as Covid-19 bites

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By Pan Yue
08 Jun 2020

Hotelier Finance, a subsidiary of Hong Kong-based property company New World Development Co, is seeking consent to skip covenant tests until June next year as it deals with the impact of the Covid-19 pandemic on its business.

The firm, which operates three luxury hotels in Hong Kong, is asking banks not to test its interest coverage ratio three times until mid 2021, according to bankers on its HK$9.25bn ($1.18bn) five year facility signed in 2018.

The covenant on the loan requires Hotelier to maintain ...

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