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Bond Market News
Sunac Working on Second Debt Restructuring; Kaisa Gets Court’s Approval for Debt Restructuring
March 25, 2025
Chinese developer Sunac is set to pursue a second offshore debt restructuring, citing a liquidation petition and weak market conditions. The company has hired Houlihan Lokey and Sidley Austin as advisors. State-owned asset manager Cinda (HK) filed the petition over a $30mn unpaid loan, which was not part of Sunac’s $9bn offshore debt restructuring completed in 2023. The court hearing was adjourned to April 28 for Sunac to present a plan. As of end-June, Sunac had RMB 227.4bn ($38.2bn) in total borrowings but only RMB 25.7bn ($3.5bn) in cash. It restructured $2.1bn in onshore bonds last year and cut debt by more than half, but still faces negotiations with creditors.
Separately, Kaisa Group won a Hong Kong court approval for its offshore debt restructuring, allowing it to proceed with its debt plan. The decision came after Judge Linda Chan reviewed final details, including a reduced 1% work fee for an ad-hoc creditor group. Kaisa defaulted on bonds in 2021 and faced liquidation lawsuits in 2023. It has over $12bn in offshore debt under restructuring. Kaisa’s winding-up hearing is set for March 31.
In another update on Chinese Developers, Kingboard Holdings, a creditor of Country Garden (COGARD) said that it has fully written off loans it made to the distressed developer. The loans are the core basis of a winding-up petition the group lodged against COGARD in February 2024. The company recorded a net loss of HKD 1.42bn ($182.8mn) on loans to COGARD and for investments in bonds issued by Guangzhou R&F Properties.
Dollar bonds of Kaisa and Sunac continue to trade at deeply distressed levels of 4-5 and 11-12 cents on the dollar respectively.
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