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Sunac China (1918) won support from holders of an onshore bond last week and will need approval from investors of two more bonds to implement debt restructuring, a source with direct knowledge of the matter said on Monday.

The Beijing-based property developer, which used to be one of China's largest, has already received sufficient support from holders of altogether eight of its 10 bonds to cut its onshore bond debt by more than half through a restructuring, said the source who requested anonymity as the information has not been made public.

Sunac is the first among Chinese developers to attempt to reduce its onshore bond debt through a company-led debt restructuring

Progress by the developer towards a landmark restructuring deal for yuan bonds could open the gates to a flurry of debt agreements this year, as the sector gives up on returning to financial health anytime soon.

Sunac needs the consent of all holders of its 10 onshore bonds worth 15.4 billion yuan (HK$16.33 billion) to move forward on debt restructuring.

The company plans to extend the voting deadline for one of the remaining bonds, for a fourth time, to Jan. 10, according to the source. A meeting is also scheduled for Jan. 21 to discuss with investors of the other - 2.8 billion yuan December 2025 notes - about the restructuring plan.

Sunac's shares in Hong Kong lost over 14 percent to HK$1.91 today.

(Reuters and staff repor

Sunac gains backing to restructure one more onshore bond, source says