Fantasia Unveils 4.7 Billion Dollar Debt Overhaul Plan

Fantasia proposed a plan to restructure 4.66 billion dollars in offshore debt using new shares and secured notes. This follows the firm's 2021 default.

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The Shenzhen-based property developer Fantasia has unveiled a comprehensive $4.7 billion offshore debt restructuring plan, aimed at addressing its financial obligations following a 2021 default. This initiative is part of a broader trend within China where real estate firms are seeking agreements with creditors to stabilize the sector. The proposal includes a mix of new equity issuance, mandatory convertible bonds, and long-dated secured notes. Under the terms of the agreement, the developer intends to allot 5.14 billion new shares to creditors at a price of 1.52 Hong Kong dollars (HK$) per share. Additionally, Fantasia will issue zero-coupon mandatory convertible bonds worth $501.2 million, which are convertible into 2.57 billion shares at the same HK$1.52 valuation. The plan also features the issuance of $1.44 billion in new secured notes, divided into a $632.5 million tranche due in 2031 and an $809.6 million tranche due in 2034, both carrying a 3% coupon rate. As of June 30, 2025, the company reported total debt of approximately 66,972 million Chinese yuan, or about $9.71 billion. To further reduce liabilities, Fantasia will convert its entire HK$1.31 billion ($167.36 million) shareholder loan balance into 4.38 billion new shares for its controlling shareholder at HK$0.30 per share, with all accrued interest being forgiven once the restructuring becomes effective. Furthermore, controlling shareholder Baby Zeng will provide a new $6 million loan at 8% interest per annum to cover the administrative costs and professional fees of the restructuring process.

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