Chinese developer asking bondholders to postpone repayment
ABC News
A troubled Chinese real estate developer with $310 billion of debt is asking investors in one of its bonds to postpone when they will be repaid
BEIJING -- A troubled Chinese real estate developer with $310 billion of debt is asking investors in one of its bonds to postpone when they will be repaid.
Evergrande Group will conduct a three-day online vote starting Friday for holders of the 4.5 billion yuan ($700 million) bond, according to an announcement made through the Shenzhen Stock Exchange in southern China.
Evergrande, the global real estate industry’s most indebted competitor, said the bond is due to mature in January 2023. It gave no indication how long investors would be asked to postpone repayment.
The company's struggle to avoid defaults while it tries to comply with tighter official limits on borrowing by China’s real estate industry has prompted fears of a financial crisis. Chinese regulators have tried to reassure investors the impact of any possible default can be contained.
