Shares of China Evergrande Group (3333.HK) edged up on Friday after the world’s most indebted developer secured a crucial approval from onshore bondholders to delay payments on one of its bonds as more developers race to avert defaults.
Struggling with $300 billion in liabilities, including $19 billion in international bonds deemed to be in cross-default after missing a payment deadline last month, Evergrande is working to avoid a technical default onshore that would complicate its politically sensitive restructuring.
The firm reached an agreement with bondholders on Thursday to delay redemption and coupon payments for a 4.5 billion yuan ($707.52 million) bond which were due on Jan. 8 by six months.
As of 0330 GMT, shares of Evergrande had climbed 1.2%, versus a 0.2% decline in the Hang Seng Mainland Properties Index (.HSMPI). Its unit China Evergrande New Energy Vehicle Group Ltd(0708.HK) jumped 8.1%.
– Reuters