China Evergrande’s bondholders in the country turned down a proposal to extend the payment term of a 4.50 billion yuan ($672.1 million) bond, in the latest sign of trouble for the indebted developer.
Evergrande’s main onshore unit, Hengda Real Estate Group, reported in documentation to the Shenzhen Stock Exchange on Monday that a majority of holders of a 2020 bond were against the plan to push back the date on which investors have the right to ask the company to repurchase the shares, from the current date of July 8 to January 8, 2023.
The unit launched the 3-year bond in January 2020 with a coupon of 6.98%. Hengda Real Estate said it was in talks with bondholders in search of an acceptable solution. China Evergrande has so far avoided default on its onshore bonds.
On the other hand, it has been considered in default by international rating agencies since last year, after failing to make some dollar-denominated bonus payments.
A few weeks ago, a petition was filed in Hong Kong against China Evergrande, relating to a liability of 862.5 million Hong Kong dollars (US$109.9 million). The petition was filed by Top Shine Global Limited of Intershore Consult.
China Evergrande, meanwhile, said last month that it is looking to announce a preliminary restructuring plan by the end of July.
The real estate giant had liabilities of about $300 billion as of June 2021, including about $20 billion in outstanding dollar-denominated debt. Source: Dow Jones Newswires.
Source: CNN Brasil
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