Greenland Holdings Rocks Bond Market With Payment Delay Plan

Greenland, whose shareholders include the Shanghai government, asked to delay repayment to holders by a year on a $488 million dollar note due June 25

(Bloomberg) — Greenland Holdings Corp., a Chinese property company long considered among the nation’s most resilient, shocked investors with a proposal to delay payment on dollar bonds. The move raised fresh doubts about the financial strength of the industry’s highest-rated borrowers.

Greenland, whose shareholders include the Shanghai government, asked to delay repayment to holders by a year on a $488 million dollar note due June 25, a rare sign of stress at a state-linked company. The bond price tumbled from highs of 92 cents on the dollar to a record low of 41 cents in recent days as fears of an extension were confirmed.