Skip to content

Evergrande Risks First Local Bond Default as Delay Rejected

  • Company had sought extension on a puttable yuan note deadline
  • Evergrande already defaulted on offshore notes in December
Bloomberg business news
WATCH: Evergrande’s onshore bond holders rejected its plan to further extend a bond payment. Rebecca Choong Wilkins reports.Source: Bloomberg
Updated on

China Evergrande Group suffered its first rejection from local creditors to extend a bond payment, a development that may result in a landmark onshore default and encourage investors to take a tougher stance against other developers battered by the nation’s property debt crisis.

Holders of a puttable yuan-denominated bond from the firm’s main onshore unit Hengda Real Estate Group Co. rejected a plan to further extend payment past a July 8 deadline by six months, according to a Shenzhen stock exchange filing Monday. The company had held a meeting last week to seek creditor approval, but more than 90% of the voting holders rejected the proposed extension.