(Reuters) – Shenzhen-based property developer Logan Group said on Thursday it has received the backing for its restructuring proposal from more than 80.8% of its creditors, who together hold $6.21 billion of outstanding offshore debt.
After having defaulted, the Hong Kong-listed real estate company offered to restructure majority of its $8.01 billion offshore debt in January.
The company is aiming to restructure $7.56 billion of the total offshore debt, while seeking to relieve creditors of its additional $476 million offshore debt under separate financing instruments.
Since China’s property crisis unravelled in 2021, several developers in the country, including China Evergrande Group, have faced liquidation lawsuits by creditors, with some firms already ordered to dissolve.
The country’s highly indebted developers began tackling the restructuring of offshore bonds in 2022. But for politically sensitive onshore bonds, they have repeatedly extended maturities, pinning their hopes on a pickup in cash flow.
Sunac China is the first troubled Chinese property developer to successfully reduce its onshore debt this year.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Shilpi Majumdar)
