Sidley Austin, Latham & Watkins, Des Voeux Chambers, Ashurst and GH Legal have assisted Sunac China in reaching a milestone in its offshore debt restructuring plan following a high court approval.
The property giant is one step closer to realising its plan after the Hong Kong High Court approved Sunac’s USD9.6 billion restructuring plan on 5 November. On completion, it will become the first major Chinese property developer to clear its offshore debts.
The plan won more than 98% creditors’ approval in October, representing 94.5% of the total debt.
Under the restructuring plan, all debt will be converted into mandatory convertible bonds that will be exchanged for Sunac shares on maturity. Creditors can convert them into ordinary shares at HKD6.8 each, or at HKD3.85 during a designated window.
This marks Sunac’s second offshore restructuring to take effect, following a USD10.2 billion plan in 2023. Alongside its two onshore restructurings, the company has reduced its debt by nearly RMB60 billion (USD8.4 billion).
Sidley Austin acted as Sunac’s legal counsel, led by partners Christopher Cheng, Carrie Li, Dhevine Chandrapala, Olivia Ngan and Desmond Ang advising on financing, capital markets, restructuring, arbitration and litigation. Des Voeux Chambers’ barrister Ho Look-chan represented Sunac in the court proceedings.
Latham & Watkins advised the ad hoc group of creditors on Hong Kong law, led by partner Howard Lam, with partner Michael Hardy’s support on structured finance. Ashurst acted as China Cinda (HK) Asset Management’s Hong Kong legal counsel, while GH Legal advised Dawnbright and Sunview on Hong Kong law.
Sunac was listed on the HKEX in 2010 and entered the industry’s top 10 list in terms of sales in 2015. However, the company has posted continuous losses since 2011, with accumulated losses exceeding RMB110 billion. By mid-2025, its debt-to-asset ratio had surpassed 94%.
So far, 11 Chinese developers have completed either onshore or offshore debt restructurings, including Yuzhou Group in September and Country Garden in November this year.
