Evergrande Unit Gets Investors to Back Yuan Bond Payment Delay

(Bloomberg) — China Evergrande Group avoided what would have been the company’s first default on a public onshore bond as a unit obtained investor backing to delay early repayment of a 4.5 billion yuan ($707 million) note.

Bondholders of more than half of the principal agreed to a proposed payment extension, the developer’s Hengda Real Estate Group Co. unit said in a Shenzhen stock exchange filing. The firm had a Jan. 8 deadline to meet investor demands for early repayment before seeking a delay last week, and a vote on the extension offer was extended to Thursday. The cash-strapped developer had been seeking a six-month delay on its 6.98% January 2023 note.