Developer Sunac China Gets US Recognition of Debt Restructuring

Sunac China Holdings Ltd. won recognition of its nearly $10 billion debt restructuring scheme in the US, overcoming a New York bankruptcy judge’s initial concerns about its geographic base of operations.

The Chinese property developer clearly established that its principal place of business is in Hong Kong, and the company will receive recognition under Chapter 15 of the US bankruptcy code of its offshore restructuring proceedings, Judge Philip Bentley of the US Bankruptcy Court for the Southern District of New York said at a hearing Wednesday.

The ruling provides US federal court blessing of a complex debt restructuring plan approved ...