Sunac is getting restructuring support from owners of nine out of 10 onshore bonds, a Reuters source said
HONG KONG (Reuters) – Sunac China has now won the backing of nine out of 10 mainland bondholders to implement a restructuring that would cut its 15.4 billion yuan ($2.11 billion) onshore debt by more than half, a source said by direct knowledge of things.
The Beijing-based developer’s progress on a landmark deal to restructure yuan-denominated bonds could open the door to a string of such deals this year, as China’s real estate sector gives up on regaining financial health any time soon.
Sunac, the first Chinese property developer to try to restructure its onshore bonds with a steep haircut, needs consent from the holders of all 10 of its onshore bonds.
Once one of China’s biggest developers, Sunac received enough support from holders of another onshore bond to extend Friday’s deadline, bringing the total number approved to nine, the source said, speaking on condition of anonymity because the information was not disclosed. public, he said on Monday.
Sunac declined to comment.
For the remaining 2.8 billion yuan due in December 2025, Sunac said a meeting was scheduled for Jan. 21 to discuss a restructuring plan with bondholders.
Sunac’s shares rose 14.6% on Monday after it said on Sunday it had sold 96% of the units it put up for sale on the first day at a Shanghai high-end development, recording contract sales of 6.6 billion yuan.
The stock’s bounce followed a 25.7% drop on Friday after the Hong Kong Suns liquidation petition was filed, reigniting investor concerns over the debt crisis despite Beijing’s efforts to revive the sector.
Reuters reported last week that Sunac had told some of its offshore creditors that it was unlikely to meet the September maturity date for its restructured bonds.
