(Reuters) – Struggling Chinese property developer Country Garden said it has received bondholder approval to further defer payments on three domestic bonds until September to give it more time to raise funds.
China’s largest private developer, which defaulted on $11 billion of its offshore bonds and is working on an offshore debt restructuring plan, in September extended the maturities of eight onshore bonds worth 10.8 billion yuan ($1.49 billion) by three years. .
Since mid-2021, China’s real estate sector has been plunged into a debt crisis, leaving many companies in default and homes left unfinished.
First installments and interest on the three-yuan bonds in question were originally due in March and June, Country Garden said in a statement to Reuters, without disclosing details of the total cost.
According to Chinese media, two payments under the renewal plan completed last year were already overdue earlier this month and entered a 30-day grace period.
“This (bondholder approval) … effectively addressed the risk of immediate redemption of the company’s bonds and provided the company with a valuable opportunity to raise funds for redemption,” it said.
($1 = 7.2457 yuan)