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Chinese Developer Powerlong Seeks Delay on $89m Bond

In a proposal to bondholders, Hong Kong-listed Powerlong aims to pay 5% of principal on the due date of the bonds, 15% after six months, and the final 80% after 12 months, sources said.


Chinese developer Powerlong seeking a delay in bond repayments.
Powerlong's developments include the Xiamen Powerlong One Mall in the Amoy area of Xiamen. Photo: Powerlong.

 

Another embattled Chinese developer has sought to delay an onshore bond payment.

Powerlong Real Estate Holdings has asked for a pause on 600 million yuan ($89 million) of onshore bonds due on July 15 and offered to repay the principal in batches over one year.

In a proposal to its bondholders, Hong Kong-listed Powerlong aims to pay 5% of the principal on the due date of the bonds, 15% of the principal after six months, and the remaining 80% after 12 months, sources said.

Powerlong is also planning to extend payment of two onshore bonds, worth 1 billion yuan each, due in August, said the sources, who declined to be identified.

The company did not respond to a request for comment.

Cash-flows at indebted Chinese property firms have been squeezed by regulatory curbs on new borrowing and poor sales amid cautious buyer sentiment since last year.

A string of offshore bond defaults by China Evergrande Group and others this year has further deepened concern about the beleaguered sector.

 

  • Reuters, with additional editing by George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.