(Reuters) – Sunac China Holdings said on Thursday its stake in its unit Sunac Services will drop to 49.7%, following implementation of a restructuring plan that will allow the company’s creditors to exchange their existing debt for equity in the unit.
Sunac added that Sunac Services will remain its subsidiary, despite the lowered stake.
The Chinese property development and management group earlier this week obtained approval from its creditors for the $9 billion offshore debt restructuring plan, marking the first approval of such debt overhaul by a major Chinese property developer.
Sunac is also in the process of seeking approval for the plan by a Hong Kong court, with a hearing scheduled for Oct. 5.
Sunac, alongside peers like China Evergrande, are among a string of Chinese property developers that have defaulted on their offshore debt payment obligations since the sector was hit by a liquidity crisis in 2021, roiling global markets.
Separately, Sunac has sought Chapter 15 protection from creditors in a U.S. bankruptcy court, court documents showed on Tuesday.
(Reporting by Nausheen Thusoo in Bengaluru; Editing by Shailesh Kuber)