Chinese developer Sunac gets Hong Kong court reprieve in winding-up case until August
A wind-up hearing for Sunac China Holdings was adjourned by a Hong Kong court until August 25, giving the Chinese developer more time to hammer out terms of its restructuring plan with creditors.
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China Cinda HK Asset Management, which filed the winding-up petition against Sunac earlier this year, sought a delay only until June. But a judge at the Hong Kong High Court gave the parties four more months, saying they need more time to make progress on a 'gigantic' case.
The adjournment granted to Sunac, the developer known for building residential projects in large Chinese cities, was less than a five-month delay it requested. The company has already been discussing with some major creditors on a plan to convert all of its offshore bonds into equity, a second debt restructuring amid persistent liquidity problems.
'We have achieved substantial progress in a rather short time,' a lawyer representing Sunac said during hearing on Monday, adding that some creditors oppose Cinda's wind-up petition.
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The company, which defaulted on a dollar bond in 2022, is the first major Chinese builder to pursue a second debt plan since the sector's debt crisis began. It successfully restructured its offshore debt in 2023. But Cinda's January wind-up petition underscored ongoing financial and legal stress and concerns about Sunac's capability to service payment obligations.
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