China Evergrande fails to get bondholder OK of payment adjustment

By Marisa Wong

Los Angeles, July 18 – Holders of the corporate bonds issued by Evergrande Real Estate Group Co., Ltd., a subsidiary of China Evergrande Group, recently voted on the proposed adjustment to the payment arrangements for the principal and interest of the bond.

The bondholders did not pass the relevant adjustment arrangements, according to a company announcement on Monday.

As of the end of July 8, being the principal and interest payment date for the bond, Evergrande Real Estate had not paid the relevant principal and interest.

The issue size of the bond is RMB 4.5 billion. The 6.98% three-year bonds were issued on Jan. 8, 2020.

“On the basic premise of ‘not evading and revoking debts,’ Evergrande Real Estate will actively negotiate with the bondholders in order to reach a consensual solution with the bondholders as soon as possible, resolve debt risks with the efforts of all parties, and protect the legitimate rights and interests of creditors in accordance with the law,” the company said on Monday.

Trading in the shares of China Evergrande on the Stock Exchange of Hong Kong Ltd. has been suspended since March 21. Trading will remain suspended until further notice, according to the latest announcement.

The real estate development company is based in Shenzhen, China.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.