Document

• Chinese real estate companies account for the vast majority of active bond restructurings in APAC

As of today, 40 Asian companies that have issued international public bonds are actively engaged in a debt restructuring process, according to Debtwire‘s Restructuring Database (click here for access).

This report provides: 1) insights from these ongoing restructuring situations; 2) up-to-date details on each active case, including information on advisors involved; and 3) our methodology for identifying active restructuring scenarios.

Summary

• The group of 40 is seeking to restructure at least USD 173.3bn-equivalent debt, including USD 102.4bn-equivalent international public bonds across 241 tranches.
• The cohort is dominated by Chinese real estate companies which account for 28, or 70%, of these situations as well as 91.3% (USD 93.5bn) of the principal amount of international public bonds being restructured (see attached report for a detailed discussion of the sector). The 28 real estate companies include 26 developers and two non-developers: 1) Hong Yang Group, the parent of developer Redsun Properties Group, and; 2) real estate agency E-House (China) Holdings.
• Mainland China as a whole accounted for 87.5% by number of cases (35) and 99.1% of the outstanding amount of international public bonds (USD 101.5bn). Seven Chinese non-real-estate companies are actively restructuring, including three conglomerates (Tus-Holdings, Peking University Founder Group, Tsinghua Unigroup), one biotech company (Wuhan Dangdai Science & Technology Industries), one oilfield equipment manufacturer and service provider (Hilong Holding), one polymer material producer (Kangde Xin Composite Material Group) and one food product manufacturer (Shandong Sanxing Group).
• This report includes five non-Mainland Chinese companies which collectively have USD 917.2m international public bonds outstanding across seven tranches. This group includes three real estate companies: Hong Kong-based Carnival Group International Holdings, Singapore-based TA Corporation and Vietnam-based No Va Land Investment Group, as well as Hong Kong-based fertilizer producer Century Sunshine Group Holdings and Indian conglomerate Jaiprakash Associates.