Chinese property developer Sunac unveils US$9.1 billion restructuring plan with debt-to-equity swap, dollar bonds
- A filing proposes swapping US$3 billion to US$4 billion of debt for ordinary shares or equity-linked instruments
- The rest would be converted into dollar-denominated public bonds with maturities of two to eight years, with interest payments after two years
Beleaguered Chinese property developer Sunac China Holdings rolled out its long awaited US$9.1 billion debt restructuring plan on Friday, vying to return to health in 2023.
The Beijing-headquartered company proposed swapping US$3 billion to $4 billion of debt into ordinary shares or equity-linked instruments, according to a filing to the Hong Kong stock exchange.
The remainder of its current outstanding debts would be converted into new dollar-denominated public bonds with maturities ranging from two to eight years, with interest payments to be made after two years, according to the filing.
Sunac, which ranked as the country’s fourth-biggest developer by sales in 2021, said that it has received approval from creditors holding more than 30 per cent of the debts.
“I would like to take this opportunity to express my sincerest apology to our shareholders, creditors, customers, partners and other stakeholders,” said chairman Sun Hongbin in a separate filing on Sunac’s delayed annual result.
