China Evergrande gains six-month extension for Hengda onshore coupon payment

Ocean Flower Island developed by China Evergrande Group in Danzhou

HONG KONG (Reuters) – China Evergrande Group’s flagship unit Hengda Real Estate Group Co Ltd said its creditors have approved a six-month extension of a 574 million yuan ($88 million) coupon payment for an onshore bond that was due on Wednesday.

It is the latest of several payment extensions for Evergrande’s onshore bonds.

Struggling with more than $300 billion in liabilities, the giant property developer defaulted on some payments for its offshore bonds last year.

Onshore bondholders of Hengda’s 7% 2026 bond have agreed to delay the coupon payment to Oct. 27, Hengda said in a filing late on Tuesday.

Evergrande said last month it would unveil a debt restructuring proposal for its offshore creditors by the end of July.

Evergrande’s dollar bond due April 2023 traded at 11.815 cents on the dollar on Wednesday morning, versus 12.247 a day earlier.

($1 = 6.5445 yuan)

(Reporting by Clare Jim; Editing by Edwina Gibbs)