Sunac China Says Has Failed to Meet Debt Obligations

- Advertisement -


By PR Venkat

- Advertisement -
- Advertisement -

Sunac China Holdings Ltd. has failed to meet debt obligations on various senior notes, highlighting how the stress that Chinese real-estate developers are under has been accentuated by the country’s Covid-19 curbs.

The property developer said Thursday that it hasn’t made interest payments on several notes it issued, including those due in October.

- Advertisement -

Sunac has also defaulted on interest payments for October and April notes that are due in 2024.

“Given the group’s current liquidity constraints, there is no assurance that the group will be able to meet its financial obligations when due or within the relevant grace periods,” it said.

Sunac’s fortunes have changed drastically in the space of a few months. As recently as last autumn, many investors–and global credit-rating firms–viewed the Tianjin-based company as one of the country’s most vital real-estate developers. But a selloff in Chinese property bonds and diminishing homebuyer confidence have caused a prolonged market dislocation and industry slump that has imperiled many real-estate companies that raised billions from selling dollar bonds.

The developer said that the contracted property sales in the Tier 1 and Tier 2 cities that form part of its key layout have been significantly affected by the country’s latest Covid-19 outbreak since March 2022.

Sunac said that it is asking its creditors for time to overcome the challenges.

The company has appointed Houlihan Lokey Ltd. as its financial adviser and Sidley Austin as its legal advisor to help assess its capital structure and liquidity position.

The advisors will also “explore all feasible solutions to ease the current liquidity constraints, so as to formulate an optimal solution for all stakeholders,” Sunac said.

Write to PR Venkat at [email protected]

,

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox