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Evergrande Unit Seeks Delaying Possible Yuan Bond Repayment

  • Unit Hengda Real Estate will hold meeting with holders of note
  • Evergrande already defaulted on dollar securities last year
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WATCH: China Evergrande Group’s property sales plummeted in 2021 for the first time in at least a decade. Stephen Engle reports.Source: Bloomberg
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China Evergrande Group is seeking to delay an option for investors to demand early repayment on one of its yuan-denominated bonds, in the latest sign of distress amid a broader real estate debt crisis.

The property giant’s onshore unit Hengda Real Estate will hold an online meeting Jan. 7-10 for holders of the note, it said in a filing to the Shenzhen stock exchange. The bond is its 4.5 billion yuan ($706 million) 6.98% security due 2023, which has a Jan. 8 put option. The firm is proposing to postpone that option date as well as an interest payment also due that day to July 8.