Sunac China has received a business wind-up petition in Hong Kong as per Bloomberg. The petition was made by a creditor known as Chen Huaijun, and the court hearing is dated for November 16. Sunac said that the winding-up petition is an aggressive move from an individual creditor having a small holding, and that it will take all measures to defend itself. It added that the petition will not have a material impact on its operations and debt restructuring. The company has begun communications with creditors’ counselors on an initial restructuring plan which is expected to release later in 2022. Sunac had defaulted on dollar bonds in May and in June, it missed payments on its local extended bonds. As per China Real Estate Information Corp, Sunac has slipped to become China’s ninth largest builder this year from being the fourth-largest builder earlier.
Sunac’s bonds are currently trading at distressed levels of around 14-15 cents to the dollar.