2023-03-28 15:15:54 ET
- Sunac China Holdings ( OTC:SCCCF ) ( OTC:SNCHY ) has reach a pact with a group of bondholders as the distressed Chinese property developer released the game plan for its debt restructuring plan, according to a Hong Kong exchange filing dated Tuesday.
- The deal came after Sunac ( OTC:SCCCF ) in May 2022 failed to make interest payments of $29.5M on October 2023 notes by the time the 30-day grace period expired .
- The company signed a restructuring support deal with AHG, an ad-hoc group of investors that hold over 30% of its outstanding offshore debt.
- Under the terms of the deal, bondholders would get new debt that expires "between two and up to nine years from the earlier of Restructuring Effective Date or 30 September 2023 and benefit from the cash sweep from a comprehensive asset package," the filing said.
- Noteholders will have the option to swap the builder's debt into equity.
- Rival real estate developer China Evergrande ( OTC:EGRNF ) also unveiled its restructuring plan for offshore notes last week, but it failed to impress investors due to its lengthy repayment period and inadequate sweeteners.
For further details see:
Sunac China unveils restructuring plan almost one year post-default