Holders of four more Sunac China bonds back restructuring, source says (updated)

Sunac China Holdings

24/12/2024 11:24

(Adds details, background in paragraph 5-8)
       HONG KONG, Dec 24 (Reuters) - Holders of six of the ten
bonds issued by property developer Sunac China  1918.HK  have
approved a restructuring plan to cut its onshore bond debt by
more than half, a source with direct knowledge of the matter
said on Tuesday.
    Sufficient holders of four of the bonds backed the plan by
Monday's extended voting deadline, the person said, in addition
to the holders of two other bonds earlier this month.
    The company is restructuring a total of ten onshore bonds
worth 15.4 billion yuan ($2.11 billion). It will delay the
voting deadline for the remaining four bonds until Dec. 27, the
person said.
    Sunac declined to comment.
    Once one of the country's top developers, Sunac is the first
Chinese property developer aiming to carry out a steep cut to
its onshore bonds through a company-led restructuring.    
    Most developers have only extended their onshore bond
maturities so far - some by twice or three times - instead of
implementing a restructuring with debt cut options.    
    Progress by Sunac towards a landmark restructuring deal for
yuan bonds could open the gates to a flurry of debt agreements
next year, as the sector gives up on returning to financial
health anytime soon.    
    The Beijing-based developer is offering four options to
bondholders in the new restructuring, including one that swaps
debt for economic income rights to its Hong Kong-listed shares,
which is a first for an onshore bond restructuring.
    ($1 = 7.2973 Chinese yuan renminbi)

 (Reporting by Clare Jim. Editing by Kirsten Donovan and Mark
Potter)
 ((Ethan.Wang@thomsonreuters.com;))