Last week, Sunac China Holdings Ltd, a property developer in China facing difficulties, announced that approximately 85% of its current bondholders have accepted a debt restructuring plan. Although the company had already met the minimum requirement for the plan in April, when creditors owning around 75% of its current debt had agreed to the proposal, some of them requested more time to complete certain internal processes.
Last week, Sunac China Holdings Ltd, a property developer in China facing difficulties, announced that approximately 85% of its current bondholders have accepted a debt restructuring plan. Although the company had already met the minimum requirement for the plan in April, when creditors owning around 75% of its current debt had agreed to the proposal, some of them requested more time to complete certain internal processes.
In March, Sunac China Holdings Ltd reached a deal with a group of creditors based outside of China to restructure its $9 billion debt. This agreement involved converting a portion of its debt into convertible bonds supported by its shares listed in Hong Kong, in addition to new notes that would have maturity periods ranging from two to nine years.
Following a year-long trading suspension, Sunac’s stock resumed trading recently, causing the company to lose over 50% of its market value.
Last year, China’s real estate sector was hit by a debt crisis, causing several major developers, including Sunac, to default. China Evergrande Group, which is currently the most indebted property developer in the world, has pushed back the deadline for receiving a reward for its debt restructuring plan to May 18. The company also disclosed the level of support it has received from offshore debtholders for its proposal.
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