Sunac shares surge 21% as Chinese property developer says it's met restructuring conditions

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A booth of Sunac China is seen astatine a lodging just successful China, May 16, 2014. Developer Sunac China missed the deadline for coupon payments connected a $742 cardinal offshore enslaved and said connected Thursday it doesn't expect to marque payments coming owed connected different bonds, adding to a question of defaults successful China's debt-laden spot sector.

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Shares of Sunac surged connected Tuesday aft the beleaguered Chinese spot developer said it has started executing its plans to overhaul its indebtedness aft satisfying restructuring conditions.

Hong Kong-listed shares of Sunac jumped 21% to 2.820 Hong Kong dollars, trading astatine its highest level successful 2 months.

The restructuring involves a afloat discharge and merchandise of the Sunac's existing indebtedness successful speech for the issuance of the caller notes.

Sunac's creditors approved its offshore indebtedness restructuring program successful September though which its indebtedness would beryllium exchanged into convertible bonds backed by its Hong Kong-listed shares, on with caller notes with maturities of betwixt 2 and 9 years.

Late past month, China signaled enactment for spot developers and resolving section authorities indebtedness problems.

The existent property assemblage is the biggest portion of China's marketplace and has slumped amid monolithic developer defaults and sliding location sales.

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