ÐÇ¿Õ´«Ã½

Skip to main content

Chinese developer asking bondholders to postpone repayment

A policeman, right, and security guard walk past Chinese flags outside the Evergrande headquarters in Shenzhen, China, Friday, Sept. 24, 2021. (AP Photo/Ng Han Guan) A policeman, right, and security guard walk past Chinese flags outside the Evergrande headquarters in Shenzhen, China, Friday, Sept. 24, 2021. (AP Photo/Ng Han Guan)
Share
BEIJING -

A troubled Chinese real estate developer with US$310 billion of debt is asking investors in one of its bonds to postpone when they will be repaid.

Evergrande Group will conduct a three-day online vote starting Friday for holders of the 4.5 billion yuan ($700 million) bond, according to an announcement made through the Shenzhen Stock Exchange in southern China.

Evergrande, the global real estate industry's most indebted competitor, said the bond is due to mature in January 2023. It gave no indication how long investors would be asked to postpone repayment.

The company's struggle to avoid defaults while it tries to comply with tighter official limits on borrowing by China's real estate industry has prompted fears of a financial crisis. Chinese regulators have tried to reassure investors the impact of any possible default can be contained.

Evergrande says it has 2.3 trillion yuan ($350 billion) in assets and 2 trillion yuan ($310 billion in debt), but it is struggling to sell real estate and other assets fast enough to keep up payments to bondholders and other creditors.

Beijing appears to be trying to avoid bailing out Evergrande to avoid sending the companies as the ruling Communist Party tries to force them to reduce their debt loads.

Beijing tightened restrictions on developers last year in a campaign to rein in surging corporate debt that is seen as a threat to economic stability. The ruling party has made reducing financial risk a priority since 2018.

Smaller developers have gone bankrupt or defaulted on hundreds of millions of dollars in bonds.

CTVNews.ca ÐÇ¿Õ´«Ã½

Since she was a young girl growing up in Vancouver, Ginny Lam says her mom Yat Hei Law made it very clear she favoured her son William, because he was her male heir.

The search for a missing six-year-old boy in Shamattawa is continuing Friday as RCMP hope recent tips can help lead to a happy conclusion.

BREAKING

BREAKING

The New Brunswick RCMP has issued an alert as officers search for an armed teenager in the Moncton and Shediac areas.

An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.

Local Spotlight

They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.

A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.

Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.

The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.

The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.

It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.

A Good Samaritan in New Brunswick has replaced a man's stolen bottle cart so he can continue to collect cans and bottles in his Moncton neighbourhood.

David Krumholtz, known for roles like Bernard the Elf in The Santa Clause and physicist Isidor Rabi in Oppenheimer, has spent the latter part of his summer filming horror flick Altar in Winnipeg. He says Winnipeg is the most movie-savvy town he's ever been in.

Edmontonians can count themselves lucky to ever see one tiger salamander, let alone the thousands one local woman says recently descended on her childhood home.

Stay Connected