Sun Hongbin, the low-profile chairman of SUNAC, recently made a rare public appearance in Chongqing to inspect the company's flagship project, Chongqing Bay. His presence signaled that the bold and ambitious SUNAC is steadily returning to normal operations.
On December 23, SUNAC officially announced the effective date of its offshore debt restructuring plan, marking the complete resolution of debt risks at the listed company level. This milestone establishes a solid foundation for SUNAC's full operational recovery and concludes its three-year comprehensive debt restructuring process, both domestically and internationally. The company can now move forward unburdened.
Under the restructuring plan, SUNAC's offshore debts have been virtually cleared, eliminating listed-entity debt risks. Through measures like debt-to-equity swaps, the developer's total repayment pressure is expected to decrease by approximately 60 billion yuan, significantly strengthening its financial stability and net asset position.
SUNAC's debt resolution represents a systematic breakthrough. Early in the industry downturn, the company proactively extended 16 billion yuan in domestic bonds, becoming a benchmark case for policy implementation. However, as market conditions worsened beyond expectations, mere extensions proved insufficient.
Facing these challenges, SUNAC adopted a market-oriented approach with a comprehensive solution. From completing domestic bond restructuring in January to implementing offshore restructuring now, SUNAC has executed one of the industry's largest and most complex debt reorganizations. The innovative plan features Sun Hongbin's personal commitment—providing unlimited joint liability guarantees for domestic bonds and converting his $450 million interest-free loan into equity under the same terms as creditors.
This risk-sharing approach secured 98.5% creditor approval and became a model for other developers, significantly accelerating industry-wide risk resolution. For SUNAC, this marks a "rebirth," bolstering confidence for project-level risk mitigation, asset revitalization, and long-term credit recovery.
Concurrently, SUNAC's operations show strong recovery signs. The company expects to deliver over 50,000 new homes this year, bringing its four-year total to 700,000 units—completing all guaranteed deliveries ahead of peers.
Premium projects demonstrate SUNAC's enduring brand power: Shanghai One River tops national sales at 22 billion yuan; Beijing One River ranks among the capital's top three luxury properties (30 million yuan+); Tianjin Meijiang One River Phase II leads its high-end segment; Wuhan Optics Valley One River sold nearly 90% on launch day.
SUNAC's success reflects broader industry trends. Twenty-one distressed developers have now completed debt restructurings, establishing a consensus that debt resolution is prerequisite for operational recovery. As the first major developer to fully restructure both onshore and offshore debts, SUNAC's win-win solution provides a valuable blueprint.
With restructuring complete, SUNAC enters a virtuous cycle. Its 124 million sqm land bank—70% in tier 1-2 cities—forms a solid base for value recovery post-debt resolution.
Sun's Chongqing appearance may herald a new beginning. From its darkest hour three years ago to joining 21 peers in debt restructuring success, SUNAC's "phoenix" narrative exemplifies industry resilience.
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