(Yicai) Sept. 14 -- Bondholders of Fantasia Group China have reportedly signed off on the Chinese real estate developer’s plan for restructuring its more than CNY6.4 billion (USD879.7 million) debt pile.

Proposals for adjusting the arrangements for repayment of the principal and interest on the Shenzhen-based company’s five yuan-denominated bonds were all greenlit at a meeting with creditors yesterday, National Business Daily reported today, citing an insider.

Fantasia began its debt restructuring process in January and has held meetings with bondholders five times since then. Progress hit a bump in May when second-largest shareholder TCL Industries Holdings objected to the terms of debt swap agreements.

The approved restructuring solidifies the creation of a long-term, stable, and healthy business plan and the firm’s return to orderly operation in the Chinese mainland, the insider said.

Shares of Fantasia Holdings Group [HKG: 1777], its Hong Kong-listed parent company, closed up 4.4 percent at 12 Hong Kong cents (2 US cents) each today.

The company has made good progress with its debt resolution since the start of the second half. In July, Colour Life Services, its affiliated provider of property management services, resumed trading on the Hong Kong Stock Exchange. That same month, a petition filed with a court to wind up the builder was withdrawn

Fantasia Holdings previously disclosed that its first-half business revenue totaled CNY4.02 billion (USD553 million), up 13 percent from the same period last year, and its net loss was CNY2.7 billion, down by CNY635 million (USD87.4 million).  

As of June 30, Fantasia Holdings had defaulted or cross-defaulted on interest-bearing debt with a principal value of around CNY44 billion (USD6 billion). 

Editor: Tom Litting