China Evergrande Group’s flagship Hengda Real Estate unit said it will meet onshore bondholders on Friday and Saturday to delay a coupon payment due last September until September this year.
The property developer said last September it had settled the coupon payment of the 4 billion yuan ($629 million) Shenzhen-traded bond due September 23 2025 via negotiations with bondholders, without giving details.
In a filing dated Thursday, Hengda said it would now hold a meeting with creditors of the 2025 bond to approve the payment of interests incurred between Sept 2020 to Sept 2021 to be made on Sept 2023.
Also on AF: China Property Default Rate Far Higher Than Stated: Goldman
Struggling with more than $300 billion in liabilities, Evergrande has so far avoided technical bond defaults onshore, though it has missed payments on some offshore bonds.
While it has yet to start negotiations with offshore creditors on debt restructuring, it has tried to seek more time from onshore bondholders for coupon and redemption payments to avoid a technical default.
In January, it secured approval from onshore bondholders to delay by six months payments on a puttable bond worth 4.5 billion yuan.
- Reuters with additional editing from Sean O’Meara
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