(Reuters) – Embattled Chinese property developer Country Garden said it has received approval from bondholders to further delay payments on three domestic bonds until September, giving more time to raise funds.
China’s largest private developer, which has defaulted on its $11 billion in offshore bonds and is pursuing an offshore debt restructuring plan, had the maturities of eight onshore bonds worth 10.8 in September billion yuan ($1.49 billion) extended for three years.
China’s real estate sector has been in a debt crisis since mid-2021, leaving many companies in default and homes unfinished.
The first installments and interest on the three yuan bonds in question were originally due in March and June, Country Garden said in a statement to Reuters, without giving details of their total value.
Two of the payments, under the expansion plan completed last year, were already overdue earlier this month and have entered a 30-day grace period, according to Chinese media.
“This (bondholder approval)…effectively resolved the company’s immediate repayment risk and provided the company with a valuable opportunity to raise funds for repayment,” the report said.
($1 = 7.2457 renminbi)
