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Evergrande Unit Gets Investors to Back Yuan Bond Payment Delay

  • More than half of bondholders vote to support extension
  • Developer avoids what could be first onshore bond default
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WATCH: Indebted developer China Evergrande Group has avoided default on a public onshore bond. Rebecca Choong Wilkins reports.Source: Bloomberg

China Evergrande Group has avoided what would have been the company’s first default on a public onshore bond, with a unit obtaining investor backing to delay early repayment of a 4.5 billion yuan ($707 million) note. 

Bondholders of more than half of the principal agreed to a proposed payment extension, the developer’s Hengda Real Estate Group Co. unit said in a Shenzhen stock exchange filing. The firm had a Jan. 8 deadline to meet investor demands for early repayment before seeking a delay last week, and a vote on the extension offer had been extended to Thursday. The cash-strapped developer had been seeking a six-month delay on its 6.98% January 2023 note.