China Debt Restructurings Come to a Head for $150 Billion Market

  • Builder Logan proposes to issue new bonds due in seven years
  • March brings crucial court dates, mileposts for developers

Residential buildings under construction in Beijing.

Photographer: Qilai Shen/Bloomberg
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Two years after China’s developers began their descent into a debt crisis that ravaged the sector and forced record defaults in the nation’s $150 billion junk dollar debt market, creditors are starting to get a taste of the full consequences.

Logan Group Co. — a builder of homes for first-time buyers which operates mainly in the Greater Bay area of Guangdong, Macau and Hong Kong — showedBloomberg Terminal its latest restructuring proposal to some noteholders this week, people familiar with the matter said. It adds to a flurry of activity in a pivotal month for the country’s property debt crunch.