(Reuters) -Sunac China said on Tuesday its offshore debt restructuring plan was approved by a majority of creditors at a court-convened meeting in Hong Kong.
The property developer said 98.5% of voting creditors, representing about 94.5% of the total voting claims, backed the plan, which covers about $7.96 billion in offshore debt.
Sunac said it would now seek final approval from the Hong Kong court at a sanction hearing scheduled on November 5.
The restructuring marks a key step in Sunac’s efforts to stabilise its finances after a prolonged property downturn in China battered developers’ liquidity.
For the first half of 2025, the company reported a loss of 12.81 billion yuan, narrowed from 14.96 billion yuan a year earlier.
Most of China’s major defaulted developers are nearing key restructuring milestones, as creditors increasingly accept limited recovery prospects amid a property crisis that has seen high-profile failures, including China Evergrande Group, and triggered hundreds of billions in defaults.
A day earlier, Country Garden said its controlling shareholder agreed to convert $1.14 billion in loans to equity as part of its offshore restructuring. The developer had defaulted on billions in offshore bonds in late 2023.
Last month, Bloomberg News reported that China Vanke was in talks with major domestic lenders to cut borrowing costs on billions of yuan in private debt.
($1 = 7.1398 Chinese yuan renminbi)
(Reporting by Roshan Thomas in Bengaluru; Editing by Shinjini Ganguli and Shilpi Majumdar)
