Sunac China reaches agreement on offshore debt restructuring

Sunac China Holdings (HKEX: 1918) announced a major step forward in its offshore debt restructuring efforts, entering into a Restructuring Support Agreement (RSA) with initial consenting creditors holding approximately US$1.3 billion in aggregate principal amount of debt. In addition, other creditors holding over US$1 billion have expressed support, representing about 26% of Sunac's existing offshore debt. The restructuring plan aims to provide a fair and equitable solution for creditors while allowing the Group to continue as a going concern, addressing offshore debt risks and establishing a sustainable capital structure. The proposed restructuring includes the issuance of new mandatory convertible bonds (MCBs) to creditors, with opportunities to convert debt into equity. The company is urging all existing creditors to accede to the RSA as soon as possible, and details have been released through the scheme website. The restructuring is subject to approval from creditors, shareholders and the relevant court.