New World Plans $1.9 Billion Debt Swap With Creditor Haircuts

New World Development Co. plans to issue up to $1.9 billion of new debt in an exchange offer that includes haircuts of as much as 50% on perpetual bonds, the embattled property firm’s latest attempt to shore up liquidity amid persistent losses.

The Hong Kong-based company plans to swap existing debt for up to $1.6 billion in new perpetual securities and $300 million in fresh notes due in 2031, according to an exchange filing on Monday.

Under the offer, some perpetual bond holders would receive half of the principal of their existing notes, while holders of other bonds would ...