Article/Intelligence
Sunac China Provides Preliminary Onshore Restructuring Plan to Creditors, Proposes to Extend Matured Bonds for 3.75Y to 2026, Current Bonds 4.5Y to 2027
Sunac China has provided a preliminary onshore restructuring plan to creditors, proposing to extend matured bonds for 3.75 years until September 2026, and bonds that have yet to mature for 4.5 years to 2027, according to two sources familiar with the matter. The company plans to begin making quarterly principal payments starting from 2025. Sunac plans to defer payment of interest accrued during the first extension period, with 50% deferred for six months and another 50% deferred for one year. Sunac is also proposing to pay a 3% consent fee to creditors once the restructuring plan is approved. The 3% fee is calculated as part of the principal repayment, and Sunac plans to pay the fee with installment payments, paying 40% of the fee in March 2023 and 60% in September 2023. The restructuring plan does not include full payment for small debt claims, as was seen on previous onshore restructuring proposals for Logan Group and R&F Properties, the sources noted. Sunac plans to use the equity income rights of its residential projects and cultural and tourism projects as credit enhancement measures for the bonds, but the measures do not include pledges or guarantees of such assets, added the sources.[...]