Defaulted property developer Sunac China said in its overseas debt restructuring plan that it may issue new US dollar bonds to replace existing ones, and creditors can also apply for debt-to-equity swaps, reported state-backed news outlet The Paper, citing the company’s debt restructuring proposal.
The company plans to issue new US dollar notes overseas to replace existing ones, with debt extension ranging from 2 years to 9 years, according to the report.
In addition, overseas creditors can also apply to convert some or all of their US dollar bonds into shares of Sunac China or its property management affiliate Sunac Services, subject to the condition that Sun Hongbin, chairman of Sunac China, remains the company’s largest shareholder and holds at least 30% of the shares in the developer after the restructuring, in order to ensure Sun’s control over the company, the report said.
