(Yicai Global) March 24 -- Shares of Sunac China Holdings tanked after the Chinese real estate developer said to investors it may miss the repayment of a CNY4 billion (USD627.8 million) bond that expires on April 1, Yicai Global learned from sources familiar with the matter.

Sunac's stock price [HKG: 1918] closed 16.7 percent lower at HKD5 (60 US cents). The shares are more than 50 down in value this year.

Meanwhile, the price of the above-mentioned bond named '20 Rongchuang 01' rebounded 16.8 percent to CNY43 (USD6.80). It had slumped by 41.4 percent yesterday.

Creditors of the Tianjin-headquartered firm said Sunac has shared its initial repayment plan. The company would repay a certain percentage of the principal on the first day of each quarter for the next 24 months.

An insider at Sunac China said that the company will hold a meeting with its bondholders to negotiate details of the new schedule.

Sunac was China's fourth-biggest real estate enterprise in 2020. But as the government started restricting the property sector's high level of indebtedness, the firm was among those that came under the spotlight. Sunac's total liabilities were CNY997.1 billion (USD157 billion) while its total assets were CNY1.21 trillion (USD190 billion) as of June 30, 2021.

If the rescheduling plan goes smoothly, Sunac can ease its working capital pressures, a source familiar with the matter told Yicai Global. The extension would support Sunac's construction and delivery of projects, the person added.

Chairman Sun Hongbin will bear unlimited joint and several liability for the bond that matures on April 1, the insiders added. The first repayment on July 1 should be 10 percent of the principal. A year from then, the ratio is expected to increase to 15 percent of the principal.

Borrowing has become harder and that shows in earnings. Sunac said on March 21 it will postpone the release of its audited 2021 results. But it predicted that net profit may have fallen about 85 percent from 2020.

The firm has revealed some sales data. Contract sales rose 4 percent to CNY597.4 billion in 2021 from 2020. In the first two months of this year, sales dropped almost 27 percent to CNY50.3 billion (USD8 billion).

Editor: Tang Shihua, Emmi Laine, Xiao Yi