Case Study: Sunac China Holdings – Scheme of Arrangement

In 2023, Sunac China Holdings became a model for defaulted developers by clinching the sector’s first major offshore debt restructuring deal.

With over $10.2 billion in Scheme claims, the Company reached an agreement with the Ad-Hoc Group of creditors (AHG), which represented over 30% of the claims, and offered various options of instruments that creditors could elect based on their objectives and constraints.

Such instruments included Convertible Bonds, Mandatory Convertible Bonds, Sunac Services Shares and New Notes.

They required support in the form of an Information Agent.

Our role included:

• Reviewing Restructuring Support Agreement (RSA) documents, launching the RSA outside the International Central Securities Depositories (ICSDs), receiving Accession Letters from Noteholders and Lenders and monitoring the transfer of claims entitled to a consent fee on the effective date.
• Reviewing Scheme documents, launching the Scheme to the market, receiving and tabulating Account Holder Letters and Proxy forms, acting as Scrutineer in the Scheme Meetings, calculating the entitlements, and assisting with settlements of all entitlements.

Via our platform Portal all parties (AHG members, Noteholders, Lenders and Account Holders) were able to submit the required forms, elect and vote without hassle and with the assistance of our global team. Ensuring the RSA and Scheme event occurred smoothly.

Our team proactivity in liaised with creditors to help garner approximately 98% participation in the Scheme. And our Scheme Calculator enabled creditors and Custodians Banks to understand their entitlements and prepare for settlement.

We also ensured an effortless settlement on which Sunac Services Shares initially held in CCASS were distributed to creditors (Noteholders and Lenders) via the ICSDs.

Find out more about our Global Debt & Bondholder Services.