Sunac China has come out with details of its restructuring plan, following its default in May 2022. Sunac said it reached an agreement with a group of key bondholders on the plan. It signed a restructuring support agreement with an ad-hoc group of investors holding over 30% of Sunac’s $9bn in outstanding dollar bonds. 

As part of the debt restructuring, bondholders would receive new bonds that mature 2-9 years from either the restructuring plan’s effective date or 30 September 2022. Sunac has the option to extend the maturity of its new shorter-dated bonds under an increased coupon rate. Bondholders will be able to swap Sunac debt into shares of Sunac Services Holdings. The restructuring will be implemented through one or more schemes of arrangement at the earliest. This follows Evergrande’s restructuring details that were finally released last week after several delays.

Sunac’s dollar bonds were trading flat at ~25 cents on the dollar.

For more details, click here

Show Buttons
Hide Buttons