Evergrande onshore bondholders reject further extension plan

HOLDERS of a yuan-denominated bond from China Evergrande Group rejected a plan by the distressed developer to further extend payment on the note past a Jul 8 deadline. 

The firm’s main onshore unit Hengda Real Estate held a meeting last week to delay the repayment deadline by another 6 months, according to a filing. 

A credit crunch at the Chinese property giant roiled markets last year as authorities embarked on a sweeping clampdown of the nation’s debt-saddled real estate sector.

Evergrande has so far avoided defaulting on its local bonds by securing delays on its payment deadlines, even after it skipped payment on its dollar notes in December.  

Both onshore and offshore investors are closely watching what could be one of the nation’s biggest debt restructurings, as they prepare for a lengthy battle over who gets paid from what remains. Evergrande has more than $300 billion in liabilities. BLOOMBERG