Lifestyle International seeks HK$8 bln loan refinancing, Bloomberg reports

Lifestyle International, the delisted parent of Hong Kong department store operator Sogo, is in talks with banks to refinance about HK$8 billion of debt, Bloomberg News reported, citing people familiar with the matter.

The refinancing, to be arranged through its subsidiary Future Develop, would replace a five-year loan maturing in June and is secured against the Sogo department store in Causeway Bay, the people said. The discussions come after lenders agreed several months ago to ease loan terms as the company's profitability remained under pressure, according to the report.

The talks follow lenders' decision about six months ago to temporarily suspend a standard financial covenant under two loan agreements, after the company failed to meet required profitability thresholds, the sources added.