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Developer China Fortune Land’s Debt Plan Meets Resistance

  • An ad-hoc group of bondholders seeks others to oppose proposal
  • Firm released restructuring plan over 18 months after default
Updated on

The first Chinese developer to default under government steps to curtail the sector’s debt growth faces creditor opposition to a long-awaited offshore restructuring plan, which seeks to push out repayment by eight years.

Advisers of an ad-hoc group of China Fortune Land Development Co. dollar-bond holders plan a call open to all such creditors at 6 p.m. Hong Kong time Thursday, during which they will explain why the offer released last week shouldn’t be supported. The builder didn’t immediately respond to a request for comment, but CFLD says in its proposal there’s no alternative plan for the $4.96 billion of outstanding dollar notes if it’s not consummated.