Sunac China unveils sweetened restructuring offer for US$9.1 billion in offshore debt in latest move by a developer
- The company has reached an agreement with a group of offshore creditors representing over 30 per cent of its outstanding offshore debt
- The move follows a US$19.15 billion debt restructuring plan unveiled last week by China Evergrande Group
Debt-troubled Chinese property developer Sunac China Holdings has sweetened a restructuring offer to holders of US$9.1 billion of its offshore debt as it seeks to get back on its feet as soon as possible.
The company has reached an agreement with a group of offshore creditors representing over 30 per cent of its outstanding debt, it said in a filing to Hong Kong’s bourse on Tuesday, becoming the latest of China’s big developers to propose a restructuring.
“The contemplated restructuring is intended to provide the company with a long-term, sustainable capital structure, allow adequate financial flexibility and sufficient runway to stabilise the business, and protect the rights and interests, and maximize value, for all stakeholders,” chairman Sun Hongbin said in the filing.
Sunac China called on other debt holders who had not consented to the company’s previous restructuring proposal to agree to the latest offer.
The Beijing-headquartered company has proposed exchanging US$1 billion of offshore debt into nine-year bonds that are convertible into its shares.
The conversion price is HK$20 a share during the first 12 months after the restructuring takes effect. After that, they will no longer carry any conversion rights and will be redeemed when the new bond matures.
