Sunac recasts debt, sets tone for troubled property developers

Embattled Chinese property developer Sunac China Holdings Ltd said it has met the conditions for debt restructuring with an effective plan, making it the first large Chinese developer to complete such a process.

The restructuring buys Sunac time to improve its business situation and also provides a good reference for other Chinese property developers in terms of debt disposal and risk resolution, said analysts.

About $10 billion of debt will be converted into six new notes, mandatory convertible bonds, convertible bonds and shares in its subsidiary Sunac Services Holdings Ltd, for a consideration of $5.7 billion, $2.75 billion, $1 billion and $775 million, respectively, Sunac said in a statement Monday night.