Controversies

Sunac misses interest on dollar bonds, apologizes to creditors

Sunac announced that interest on a US dollar note maturing in October 2023 remained unpaid after its 30-day grace period had expired, and that interest on three other notes was also unlikely to be paid within their grace periods, totaling about USD 104 million across the four notes. The company apologized and engaged financial and legal advisers to seek a debt solution. Status: the company publicly acknowledged payment difficulties. Entity involved: Sunac China Holdings Limited.

Sunac hit by debt crisis, restructures onshore and offshore debt twice

Sunac's cash-flow crisis surfaced in 2021, and it defaulted on public debt in the first half of 2022. In January 2023 it completed an extension of RMB 16 billion in onshore bonds, and in November it completed the restructuring of about USD 9 billion in offshore debt through a "debt-to-equity swap plus new notes" arrangement. But weaker-than-expected recovery in performance and a winding-up petition filed by China Cinda (Hong Kong) forced a second restructuring. It completed a second onshore restructuring in January 2025; in October its offshore restructuring plan won the support of 98.5% of creditors by number, was approved by the Hong Kong High Court in November and took effect on December 23, with about USD 9.6 billion of debt fully discharged and converted into mandatory convertible bonds. The company said its overall debt repayment pressure fell by nearly RMB 60 billion, making it the first large developer to complete full onshore and offshore debt restructuring; original shareholders' equity was heavily diluted.

Homebuyers protest price cuts at Sunac China development in Tianjin

Public backlash

In 2019, homebuyers gathered at the sales office of a Sunac China development in Tianjin to protest falling prices and to demand refunds. According to the report, Sunac offered compensation options that the buyers found unsatisfactory. The event drew attention to tensions between homebuyers and developers over price adjustments at residential projects.