Sunac, one of the biggest property developers in China, is among the many that defaulted last year as the sector reeled under a debt crisis.

China Evergrande Group, the world's most indebted property developer, last week announced plans for the restructuring of $22.7 billion in offshore debt, which could create a template for distressed rivals and shape investor sentiment towards the country's embattled property sector.

Beijing-based Sunac said part of the debt will be exchanged into convertible bonds backed by its Hong Kong-listed shares, along with new notes with maturities of between two and nine years, bearing interest rates between 5% and 6.5%.

Sunac said there will be an option for the company to extend the maturity of the first two tranches - new notes with two- and three-year maturities - by one additional year.

Creditors can also choose to convert some debt into another convertible bond with a lower conversion price, or shares in its property management unit, Sunac Services.

A consent fee of 0.1% of the debt holding will be paid to creditors who give their support before April 20, and the restructuring is expected to take effect on Sept 30.

The property developer said its shares, which have not traded since April 1 2022 pending the release of 2021 financial reports, will remain suspended.

Earlier this year, Sunac extended the maturity of its 16 billion yuan ($2.33 billion) onshore bonds by an average of 3.5 years.

($1 = 6.8761 Chinese yuan renminbi)

(Reporting by Clare Jim; Editing by Christina Fincher)