Latest news with #Sunac
South China Morning Post
28-04-2025
- Business
- South China Morning Post
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. Advertisement 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. 10:57 Boom, bust and borrow: Has China's housing market tanked? Boom, bust and borrow: Has China's housing market tanked? 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.
South China Morning Post
18-04-2025
- Business
- South China Morning Post
Chinese developer Sunac reaches deal with key creditors on offshore debt revamp plan
Sunac China Holdings has reached an agreement with key creditors to restructure US$9.6 billion in offshore debt, marking another step forward for the country's beleaguered home builders as the property market begins to show signs of stabilisation. Advertisement The Beijing-based developer entered into a restructuring support agreement with creditors holding around US$1.3 billion in principal, while another group of creditors with over US$1 billion in debt has also expressed support and was in the process of signing off on the deal, Sunac said in a filing to the Hong Kong stock exchange late on Thursday. The two groups of creditors held about 26 per cent of Sunac's existing debt, it added. Under the agreement, creditors can choose to receive two types of mandatory convertible bonds (MCBs). MCB 1 will be converted into ordinary shares at HK$6.8 (US$0.9) per share when the restructuring takes effect, and MCB 2 will be converted 18 months later at HK$3.85 per share. Creditors could also opt for a combination of the two bonds, with the proportion of MCB 2 capped at 25 per cent. 03:49 Rally cry by Xi sets economic priorities for Chinese officials, absolves them of mistakes Rally cry by Xi sets economic priorities for Chinese officials, absolves them of mistakes Sunac said that about 23 per cent of the new MCBs would be issued to founder and chairman Sun Hongbin – a substantial shareholder – in the form of restricted shares. These shares are intended to help stabilise the company's shareholding structure and cannot be sold for six years. Advertisement
Yahoo
25-03-2025
- Business
- Yahoo
Chinese Property Crisis Just Won't Go Away, Sunac's Case Shows
(Bloomberg) -- Sunac China Holdings Ltd., one of the first major Chinese developers to complete an offshore restructuring, is starting the process all over again, as it joins a growing number of builders facing persistent liquidity problems amid a prolonged property crisis. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Libraries Warn They Could Be 'Cut off at the Knees' by DOGE The company said it has begun offshore debt restructuring work and has appointed Houlihan Lokey (China) as financial adviser and Sidley Austin as legal adviser, according to a filing to the Hong Kong stock exchange. The move makes Sunac the first major Chinese builder to pursue a second-round restructuring since the debt crisis began. Sunac's woes highlight the challenges faced by many defaulted developers that don't have the liquidity to restructure their debt. Builders are still under pressure as home prices in China continue to fall, despite government efforts to prop up the property market. And even if a restructuring gets approval from a court, the company still must have enough liquidity to complete the deal. 'Most defaulted players still have poor contracted sales, cash collection and access to new funding,' said Zerlina Zeng, head of Asian strategy at Creditsights Singapore LLC. That constrains their willingness to work out a better deal with offshore bondholders, she added. One of Sunac's creditors, China Cinda HK Asset Management Co., has filed a liquidation petition against the company, and told a court in Hong Kong on Monday that the company hasn't offered any terms for the new offshore restructuring. Sunac's lawyers said the company needed more time to develop its plans. 'Forcing offshore debt holders to accept worse terms and deeper haircuts unfortunately might have to be used to resolve China's bad property debt,' said Zeng. Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work ©2025 Bloomberg L.P.
Bloomberg
24-03-2025
- Business
- Bloomberg
Sunac Creditor Tells Court Company Has No Feasible Debt Plan
A key creditor of defaulted Chinese builder Sunac China Holdings Ltd. told a Hong Kong court that the company hasn't offered any terms for a new offshore restructuring, despite saying that it intended to pursue such a plan. Lawyers for China Cinda HK Asset Management Co., which has filed a petition seeking the developer's liquidation, asked the court on Monday to issue an immediate winding up order against Sunac.
Reuters
24-03-2025
- Business
- Reuters
Chinese developer Sunac says to conduct second offshore debt restructuring
HONG KONG, March 24 (Reuters) - Debt-laden property developer China Sunac ( opens new tab told its offshore creditor it would carry out a second round of debt restructuring, a Hong Kong court heard on Monday, which would make it the first in the sector to do so. A unit of state-owned asset manager Cinda, Cinda (HK), filed a liquidation petition early this year against Sunac in relation to the non-payment of a $30 million loan. Make sense of global markets with the Trading Day newsletter. Sign up here. The petition surprised many in the market because Sunac completed its $9 billion offshore debt restructuring in 2023, the first troubled developer in China's property sector to achieve the milestone since the debt crisis that started in 2021. A second debt restructuring and the new liquidation petition underscore the protracted battle facing the developer and the sector. A lawyer for Cinda, Thomas Wong of Temple Chambers, sought an immediate liquidation of Sunac on Monday because he said the developer did not provide any documentation to show it was conducting a restructuring that it said it was doing. Judge Gary Lam, citing other creditors opposed to a liquidation, adjourned the hearing to April 28 for Sunac to show its progress on restructuring. This is the first time Sunac has confirmed it would undergo a second offshore debt restructuring. "Given the impact of the considering that the current market conditions are significantly below the expectations when the prior offshore debt restructuring plan was formulated, the company does not exclude seeking a more comprehensive holistic offshore debt solution based on the actual situation," it said in a filing in January.
