(Yicai Global) April 1 -- Shares of China Fortune Land Development rallied after the troubled property developer said it has finished restructuring nearly half of its debts.

CFLD's stock price [SHA: 600340] soared by 9.9 percent to CNY4.21 (US 70 cents) intraday. The shares have cumulatively increased 46 percent as of yesterday, after hitting a historical low of CNY2.62 on March 15.

The company inked CNY104.8 billion (USD16.5 billion) worth of debt restructuring deals, the Beijing-based property developer said in a statement yesterday. The sum should erase CNY8.7 billion (USD1.4 billion) of interest and overdue penalty.

Last September, CFLD revealed its plan to repay CNY219.2 billion (USD34.5 billion) of debts by asset sales and equity swaps. After the scheme is completed, the company intends to keep some of its business regarding industrial new cities, a type of public-private partnership projects, and property management.

Problems arose for the first time when CFLD defaulted on its debt in January 2021 amid new Covid-19 outbreaks and the tightening regulatory environment. The real estate firm, which builds residential projects around Beijing, had more than CNY400 billion in assets in 2019.

At present, CFLD has CNY40.7 billion (USD6.4 billion) in outstanding debts, excluding interest, it said yesterday. The repayment will be implemented based on the debt restructuring plan, it added.

In February 2021, Ping An Insurance Group, which indirectly controls more than 25 percent of CFLD's equity, led the establishment of a creditors' commission to advance the property developer's restructuring.

Editor: Emmi Laine, Xiao Yi