Backed by one of Hong Kong’s wealthiest families, the firm has faced liquidity woes after reporting its first loss in two decades in the financial year ended 12 months ago. The company wants to complete a HK$87.5 billion loan refinancing deal by the end of June, meaning the coming two months may see the denouement of the crisis for some of the high profile victims of the downturn.

This week’s turmoil was triggered after New World announced late Friday that it would defer $77.2 million in coupon payments on four perpetual notes due in June. The unexpected move sent its dollar bonds and shares plunging. One bond fell to 22 cents on the dollar after the news before rebounding to 32 cents on Monday, still a highly distressed level.

“We see a high chance of New World’s dollar bonds entering a liability management exercise after it secures the loan refinancing to reduce debt and improve interest coverage,” Zerlina Zeng, the head of Asian strategy at CreditSights Singapore, wrote in a note, adding that the firm does not rule out the possibility of New World including its dollar senior bullet bonds in the liability management

The deal, backed by 90% of existing first-lien lenders and 65% of second-lien holders, will see creditors exchanging their holdings into a new so-called “first-lien second-out” loan at 92 cents on the dollar. First-lien lenders left out of talks can swap 30% of their debt into second-out paper at 77 cents on the dollar.