A Sunac China booth is seen at a housing fair in China, May 16, 2014. Developer Sunac China missed a deadline for coupon payments on a $742 million offshore bond and said Thursday it does not expect make overdue payments on other bonds, adding to a wave of defaults in China’s indebted real estate sector.
Costofoto | Future publications | fake images
Actions of Sunac rose on Tuesday after the embattled Chinese property developer said it had begun executing plans to review its debt after meeting restructuring conditions.
Sunac’s Hong Kong-listed shares rose 21% to HK$2,820, trading at their highest level in two months.
The restructuring involves a full discharge and release of Sunac’s existing debt in exchange for the issuance of new promissory notes.
Sunac’s creditors approved its offshore debt restructuring plan in September, under which its debt would be swapped for convertible bonds backed by its Hong Kong-listed shares, along with new notes with maturities of between two and nine years.
Late last month, China expressed support for property developers and resolving local government debt problems.
The real estate sector is the largest part of the Chinese market and has collapsed amid massive developer defaults and declines in home sales.
