Chinese developer Sunac gets Hong Kong court reprieve in winding-up case until August
Sunac’s financial adviser told creditors last week that the firm expects to complete its restructuring by the end of 2025 or early next year
A wind-up hearing for Sunac China Holdings was adjourned by a Hong Kong court until August 25, giving the Chinese developer more time to hammer out terms of its restructuring plan with creditors.
China Cinda HK Asset Management, which filed the winding-up petition against Sunac earlier this year, sought a delay only until June. But a judge at the Hong Kong High Court gave the parties four more months, saying they need more time to make progress on a “gigantic” case.
The adjournment granted to Sunac, the developer known for building residential projects in large Chinese cities, was less than a five-month delay it requested. The company has already been discussing with some major creditors on a plan to convert all of its offshore bonds into equity, a second debt restructuring amid persistent liquidity problems.
“We have achieved substantial progress in a rather short time,” a lawyer representing Sunac said during hearing on Monday, adding that some creditors oppose Cinda’s wind-up petition.
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The company, which defaulted on a dollar bond in 2022, is the first major Chinese builder to pursue a second debt plan since the sector’s debt crisis began. It successfully restructured its offshore debt in 2023. But Cinda’s January wind-up petition underscored ongoing financial and legal stress and concerns about Sunac’s capability to service payment obligations.