Monday, January 30, 2023

China’s Yango Group seeks debt forbearance over repayment concerns -Redd By Reuters

-


© Reuters. FILE PHOTO: The Chinese national flag is seen in Beijing, China April 29, 2020. REUTERS/Thomas Peter/File Photo

SHANGHAI (Reuters) – Chinese developer Yango Group has asked holders of its asset-backed securities to refrain from asking for repayment for a year over concerns it would struggle to pay, financial intelligence provider Redd reported.

Yango’s 1.27 billion yuan ($198 million) 6.5% asset-backed securities mature in November 2022 but give holders the option to demand repayment next month.

In a report late on Friday, Redd cited four unnamed sources as saying the company had made the request to investors on Friday, at a closed-door meeting in Shanghai attended by senior executives.

Yango has no plans to provide credit enhancements to encourage holders to approve the extension, and executives indicated the company “could have trouble paying” if investors declined to extend the put date, the report said. No bondholders had approved the plan by the end of the meeting, Redd reported.

The request comes as a debt crisis at China Evergrande Group has raised concerns https://www.reuters.com/article/china-evergrande-debt-explainer-idCAKBN2HC0MU among investors globally about the country’s deeply indebted, $5 trillion property sector, tightening funding access for other developers.

Evergrande narrowly avoided a catastrophic default for the second time in a week on Friday, making a last-minute payment on an overdue dollar bond coupon just before its grace period expired.

In addition to its asset-backed securities, Yango has eight outstanding U.S. dollar bonds worth a total $2.24 billion and 14 outstanding yuan-denominated bonds worth 13.1 billion yuan, according to Refinitiv data.

($1 = 6.4050 )

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,679FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories