Sunac China wins some bondholder approval for onshore restructuring plan, source says (updated)

Sunac China Holdings

10/12/2024 10:42

(Adds company comment, background in paragraph 4, 6-8)
    By Clare Jim
       HONG KONG, Dec 10 (Reuters) - Sunac China  1918.HK  has
won approval from some of its bondholders for a plan to cut its
onshore bond debt by more than half through a restructuring, a
source with direct knowledge of the matter said on Tuesday. 
    Two of the ten onshore bonds in the restructuring have
received sufficient support from holders, the person said. The
company will delay the voting deadline for the rest of the bonds
to Dec. 23. 
    Sunac declined to comment.
        Once one of the country's top developers, Sunac is the
first Chinese property developer who aims to carry out a steep
cut on its 15.4 billion yuan ($2.12 billion) onshore bonds
through an restructuring.
  
        The voting originally ended on Monday, having given
bondholders only eight working days to deliberate and
communicate with the company on the 
    refined proposal
    , private filing to bondholders seen by Reuters has showed.
  
        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.
  
        Sunac first restructured its onshore bonds in late 2022
by extending all coupon and principal payments. 
  
        After several payments became due again, it started
delaying payments in June as "the time length and level of the
company cashflow being under pressure far exceeded
expectations," it said in a filing last month.
  

($1 = 7.2791 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Louise Heavens)
 ((clare.jim@thomsonreuters.com;))