What’s new: Cash-strapped developer Sunac China Holdings Ltd. won bondholders’ support to extend repayment of 16 billion yuan ($2.3 billion) of domestic bonds by an average of 3.5 years.
The extended debts include nine onshore notes and an asset-backed security, according to Sunac Real Estate, the issuer of the bonds. Sunac agreed to offer property projects, including its mega tourism project Sunac Land, as additional guarantee for the debts.
Background: Sunac, China’s 10th-largest builder by contracted sales, has been caught up in a massive property crisis since late 2021 that’s hurt the world’s second-largest economy and prompted regulators to formulate a sweeping rescue plan for the industry. The builder missed payments on offshore bonds last year and struggled to meet local debt obligations.
Sunac has been stepping up efforts to offload assets and restructure its debts. The company said Tuesday it would sell its entire 51% stake in a sprawling Shenzhen ski resort to state-backed partner Zhuhai Huafa Properties Co. Ltd. for 3.58 billion yuan.
In December, Sunac unveiled a plan for restructuring its $9.1 billion in offshore debt, seeking creditors’ agreement. The company faces a liquidation lawsuit in Hong Kong.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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