Struggling Chinese Developer Fantasia Proposes $4.7B Debt Restructuring Deal

Chinese property company Fantasia has announced a comprehensive plan to restructure $4.66 billion in offshore debt through new stock shares, convertible bonds, and secured notes. The Shenzhen-based developer defaulted on its obligations in 2021 during China's broader real estate crisis.

A troubled Chinese real estate company announced Friday its comprehensive strategy to reorganize $4.66 billion in international debt obligations, proposing to address creditor claims through fresh stock issuances, convertible securities, and long-term secured bonds.

Fantasia, the Shenzhen-headquartered property firm, detailed its restructuring approach involving new equity shares, mandatory convertible bonds, and approximately $1.44 billion in newly secured notes to resolve outstanding creditor demands.

The company joined numerous other developers who failed to meet debt obligations in 2021 during China’s widespread real estate industry turmoil. An increasing number of these firms have successfully negotiated restructuring deals with their lenders.

According to company disclosures, Fantasia carried roughly 66,972 million Chinese yuan (equivalent to $9.71 billion) in total debt as of June 30, 2025.

The restructuring framework calls for distributing 5.14 billion new shares to participating creditors, priced at HK$1.52 per share.

Additionally, Fantasia plans to distribute zero-interest mandatory convertible bonds valued at $501.2 million, which will transform into 2.57 billion shares at the identical HK$1.52 pricing.

The company will also distribute secured notes totaling $1.44 billion, structured as $632.5 million in bonds maturing in 2031 and $809.6 million due in 2034, both offering 3% annual interest rates.

The restructuring includes converting a complete HK$1.31 billion ($167.36 million) shareholder loan by distributing 4.38 billion fresh shares to its primary shareholder at HK$0.30 each, with all accumulated interest permanently eliminated once the reorganization takes effect.

In a related move, controlling shareholder Baby Zeng will provide $6 million as a shareholder loan carrying 8% annual interest. These resources will cover costs and expenses associated with the proposed restructuring process.