Sunac gains backing to restructure one more onshore bond, source says

Sunac China Holdings

06/01/2025 06:59

HONG KONG, Jan 6 (Reuters) - Sunac China  1918.HK  won
support from holders of an onshore bond last week and will need
approval from investors of two more bonds to implement debt
restructuring, a source with direct knowledge of the matter said
on Monday.
    The Beijing-based property developer, which used to be one
of China's largest, has already received sufficient support from
holders of altogether eight of its 10 bonds to cut its onshore
bond debt by more than half through a restructuring, said the
source who  requested anonymity as the information has not been
made public.
    Sunac declined to comment.
    Sunac is the first among Chinese developers to attempt to
reduce its onshore bond debt through a company-led debt
restructuring
    Progress by the developer towards a landmark restructuring
deal for yuan bonds could open the gates to a flurry of debt
agreements this year, as the sector gives up on returning to
financial health anytime soon.
    Sunac needs the consent of all holders of its 10 onshore
bonds worth 15.4 billion yuan ($2.11 billion) to move forward on
debt restructuring.
    The company plans to extend the voting deadline for one of
the remaining bonds, for a fourth time, to Jan. 10, according to
the source. A meeting is also scheduled for Jan. 21 to discuss
with investors of the other - 2.8 billion yuan December 2025
notes - about the restructuring plan.
    

 (Reporting by Clare Jim; Editing by Jacqueline Wong)
 ((clare.jim@thomsonreuters.com;))