China Evergrande to meet with some yuan bondholders to delay redemption date

[BEIJING] China Evergrande Group said on Wednesday it will hold an online meeting with some yuan bondholders on Jan 7-10 to vote on proposals including one on delaying the redemption date of some bonds to July 8 from Jan 8.

The bonds in question are Hengda Real Estate Group's 4.5 billion yuan (S$212.8 million) 6.98 per cent January 2023 bond, which gives bondholders the option to sell bonds back to the issuer this weekend Trading in the bonds will be halted from Jan 6 ahead of the meeting with bondholders, Hengda, the flagship property arm of Evergrande, said in a statement.

The proposed change in redemption date is due to the"current operational status" of the issuer, it added, without elaborating.

Evergrande is struggling to repay more than US$300 billion in liabilities, including nearly US$20 billion of offshore bonds deemed in cross-default by ratings agencies last month after it missed payments.

Evergrande shares listed in Hong Kong eased over 1 per cent on Wednesday morning, versus a 0.5 per cent drop in the broader market.

REUTERS