Chinese property developer Sunac says it meets restructuring terms
A booth of Sunac China is seen at a housing fair in China, May 16, 2014. Developer Sunac China missed the deadline for coupon payments on $742 million offshore bonds and said Thursday that it has no plans to make payments due. on others. bonds, adding to a wave of defaults in China’s debt-laden property sector.
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Sections of Swedish rose on Tuesday after the beleaguered Chinese property developer said it had started implementing its plans to review its debt after satisfying restructuring conditions.
Hong Kong-listed shares of Sunac jumped 21% to 2,820 Hong Kong dollars, trading at a two-month high.
The restructuring involves the full dissolution and release of Sunac’s existing debt in exchange for the issuance of the new notes.
Sunac’s creditors approved its offshore debt restructuring plan in September although its debt would be swapped into convertible bonds backed by its Hong Kong-listed shares , along with new notes with maturities between two and nine years.
Late last month, China signaled support for real estate developers and a solution to local government debt problems.
The real estate sector is the largest part of the Chinese market and has shrunk amid major developer shortages and mobile home sales.