East China Province Financing Vehicle Negotiates Debt Payment Extension

(Bloomberg) — A local government financing vehicle (LGFV) in East China’s Shandong province reached an agreement with creditors to partially repay and extend the payment deadline for nearly all of its 479 million yuan ($66.8 million) non-bond debts, highlighting the sector’s liquidity challenges despite government support.

Weifang Binhai Investment Development Co. Ltd., which raises off-balance-sheet debt financing for the province’s infrastructure projects, hadn’t made payments as of Dec. 31, past the original deadline, according to the LGFV’s filing this month that was posted on the Shanghai Stock Exchange’s private disclosure forum but seen by Bloomberg.