Firms guide Sunac’s USD9.6bn offshore debt restructuring – Law.asia

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
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