The developer said in a filing to the Hong Kong stock exchange that its proposal to restructure $9 billion of offshore debt had been sanctioned by Judge Jonathan Harris at the city's High Court.
The ruling will pave the way for creditors to get their money back after Sunac defaulted on several US dollar-denominated bonds and other liabilities.
Once the third-largest property developer in China, Sunac asked last month to be placed under bankruptcy proceedings in the United States as the debt crisis gradually took over the industry.
The approval in Hong Kong came weeks after creditors, who own 98.3 percent of the total value of the bonds, voted to approve Sunac's plan.
Under the plan, a part of Sunac's debt would be exchanged into convertible bonds backed by its Hong Kong-listed shares along with new notes with maturities of between two and nine years.
Sunac's share price jumped by as much as 12 percent to HK$2.31 in Hong Kong before closing at HK$2.19.
The setbacks in the once-favoured property industry in China have fuelled distrust for two years in a sector that had long been lucrative but is now shunned.
In recent months, this crisis of confidence has overtaken groups previously considered financially solid in recent months, including Evergrande and Country Garden.
Sunac's progress came before a crucial hearing at the end of the month for the Evergrande Group, which has become a symbol of China's ballooning property crisis.
Evergrande estimated it had debts of $328 billion at the end of June.
Its founder and chairman Xu Jiayin was suspected of "illegal crimes" after reports he was being held by police.
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