Core Insights - Major breakthroughs in debt restructuring have been achieved by leading private real estate companies, Sunac and Country Garden, with significant reductions in their debt burdens [2][3] - The debt restructuring process has accelerated, shifting from primarily extending debt terms to substantial debt reduction, with many companies reducing their overseas debt by over 50% [2][6] Company Developments - Sunac's overseas debt restructuring plan, amounting to approximately $96 billion, was approved by the Hong Kong High Court, effectively achieving a "debt-to-equity" conversion [3][4] - Country Garden's restructuring plan, covering about $177 billion in debt, received over 75% approval from creditors, aiming for a debt reduction of approximately $117 billion, translating to a 66% reduction [3][4] Industry Trends - The debt restructuring models have fundamentally changed, with a focus on direct debt reduction rather than mere extensions, indicating a significant shift in the approach to managing financial distress [6][7] - The successful restructuring of several major firms, including CIFI and Shimao, reflects a broader trend of improving creditor attitudes and a more pragmatic approach to debt recovery [5][7] Future Outlook - The completion of debt restructuring is expected to alleviate short-term repayment pressures and interest costs for real estate companies, allowing them to focus on "guaranteeing delivery" and transitioning to asset-light business models [8][9] - The industry is poised for transformation, with companies likely to pivot towards property management, asset management, and other light-asset operations, leveraging their existing capabilities [8][9]