Chinese real estate developer Sunac says it has met restructuring conditions

A stand of Sunac China is seen during a housing fair in China, May 16, 2014. Developer Sunac China missed the coupon payment deadline on a $742 million offshore bond and said on Thursday that it does not expect to make payments due on other bonds, adding to a wave of defaults in China’s debt-ridden real estate sector.

Cost photo | Future publications | Getty Images

Actions of Sunac surged on Tuesday after the troubled Chinese real estate developer said it had started executing its debt restructuring plans after meeting restructuring conditions.

Shares of Hong Kong-listed Sunac jumped 21 percent to HK$2,820, trading at their highest level in two months.

THE restructuring involves a total release of Sunac’s existing debt in exchange for the issuance of new notes.

Sunac’s creditors in September approved its offshore debt restructuring plan, under which its debt would be swapped for convertible bonds backed by its Hong Kong-listed shares, as well as new notes with maturities between two and nine years.

Late last month, China announced support for real estate developers and resolving local governments’ debt problems.

The real estate sector represents the largest part of China’s market and has collapsed due to massive defaults by developers and falling housing sales.

Stock chart iconStock chart icon


Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top