Sunac China to reduce stake in unit under debt restructuring plan (updated)

Sunac Services Holdings

21/09/2023 15:46

(Adds details of restructuring approval in paragraphs 3 & 4;
background in paragraphs 5 & 6)
       Sept 21 (Reuters) - Sunac China Holdings  1918.HK  said
on Thursday its stake in its unit Sunac Services will drop to
49.7%, following implementation of a restructuring plan that
will allow the company's creditors to exchange their existing
debt for equity in the unit.
    Sunac added that Sunac Services will remain its subsidiary,
despite the lowered stake.
    The Chinese property development and management group
earlier this week obtained approval from its creditors for the
$9 billion offshore debt restructuring plan, marking the first
approval of such debt overhaul by a major Chinese property
developer.    
    Sunac is also in the process of seeking approval for the
plan by a Hong Kong court, with a hearing scheduled for Oct. 5.
    Sunac, alongside peers like China Evergrande  3333.HK , are
among a string of Chinese property developers that have
defaulted on their offshore debt payment obligations since the
sector was hit by a liquidity crisis in 2021, roiling global
markets.
    Separately, Sunac has sought Chapter 15 protection from
creditors in a U.S. bankruptcy court, court documents showed on
Tuesday. 

 (Reporting by Nausheen Thusoo in Bengaluru; Editing by Shailesh
Kuber)
 ((Nausheen.Thusoo@thomsonreuters.com;))