Chinese real estate developer Sunak China announced last night that its foreign debtreconstructionIt has been unanimously approved by creditors and is expected to reduce debt by more than US$4.5 billion.According to reports, Sunak China applied to the US court today for the restructuring of its US dollar debt.bankruptcySecurity to obtain recognition.
Sunak China’s debt crisis began in May last year, prompting reports that it was unable to pay interest on a US$29.5 million loan, and also warned that there would be more loan defaults. However, recently the crisis has gradually been resolved.
According to the Chinese media China Business News, Sunak China announced on the Hong Kong Stock Exchange on the evening of the 18th that its overseas debt restructuring was finally approved by a high vote, with the number of creditors reaching 99.75% and the approval rate of 98.3% . % for total loan.
The announcement stated that creditors have shown intention of higher subscription for the mandatory convertible bonds, and SANAC intends to once again raise the maximum limit of mandatory convertible bonds from US$2.2 billion in a US dollar debt restructuring in the Comprehensive Debt Restructuring Plan. 2.75 billion US dollars. As for other debt-for-equity swap options, Sunac expects to reduce its total debt by more than US$4.5 billion through the debt-for-equity swap.
According to reports, Sunac China applied for bankruptcy protection to the US court on the 19th in accordance with the provisions of Chapter 15 of the US Bankruptcy Code, in order to obtain the US court’s judgment on Sunac.hong kongCourt approval of the plan of reorganization.
The report pointed out that in the process of restructuring of foreign debt of real estate companies, many real estate companies, including Kaisa, Modern Land, Rongsheng Development, etc., have obtained Chapter 15 certification in the process of restructuring of US dollar debt.
China Evergrande also filed for the same bankruptcy protection in Manhattan Bankruptcy Court in New York on August 17.
The report quoted industry lawyers as saying that since Sunak’s US dollar bonds are governed by New York law, Sunak’s restructuring in Hong Kong will have to obtain US Chapter 15 certification to ensure its legality in the United States. This is a regular process.
Additionally, applying for Chapter 15 certification may prevent creditors from using New York law to circumvent restructuring clauses governed by the Hong Kong court and avoid meeting relevant obligations under the restructuring clauses. The certification process itself will not change any terms of the restructuring agreement, and the interests of creditors will be fully consistent with the arrangements set out by the Hong Kong court.
According to reports, if the restructuring is successfully completed, Sunac China will become one of the first real estate companies to undergo domestic and overseas debt restructuring. The overall debt scale will be significantly reduced, which will help the company to resume operations at the earliest. ,
Sunak China’s Beijing projects are selling well after the Chinese government launched a “recognition of homes but not loans” policy at the beginning of the month. With the withdrawal of “Hong Kong Stock Connect” and other favorable incentives, the company’s stock prices in Hong Kong have risen 200% in the past two weeks.
Sunak China’s share price surged more than 10% this morning after it announced last night that its overseas debt restructuring had been approved by an overwhelming vote. However, there was selling pressure in the afternoon and fell 4.28% to close at HK$2.68. ,
finance(tagstotranslate)reorganization
