More China Builders Use Debt-Equity Swap In Restructuring: Paper

Debt-to-equity swap has become a mainstream approach in Chinese developers’ debt restructuring, Securities Times reported, citing recent public disclosure by companies such as Sunac and Kaisa.

• In the new round of debt restructuring, most real estate companies have shifted their debt restructuring strategies to “comprehensive debt reduction” from debt extension
• The Chinese developers are carrying out the strategy mainly through discounted redemption of bonds as well as offers of mandatory convertible bonds, report says, citing unidentified analysts
• As most distressed real estate companies remain cash-strapped and their asset value has shrunk or been mortgaged or pledged, there are ...