Evergrande Seeks to Delay Early Payment Option on Yuan Bonds

Evergrande was labeled a defaulter for the first time in early December as it missed payments on dollar bonds

(Bloomberg) — China Evergrande Group is seeking to delay an option for investors to demand early repayment on one of its yuan-denominated bonds in the latest sign of distress amid a broader real estate debt crisis.

The property giant’s onshore unit Hengda Real Estate will hold an online meeting Jan. 7–10 for holders of the notes, it said in a filing with the Shenzhen stock exchange. The bonds are the company’s 4.5 billion yuan ($706 million) 6.98% security due 2023, which has a Jan. 8 put option. The developer is proposing to postpone the option date as well as an interest payment due that day to July 8.