Jinke Property Group is seeking to extend the payment deadline of its RMB 1.25 billion ($188 million) onshore bond to avert a default, as the Chinese government’s policy easing on the real estate sector was too late to have any material impact on its overall business, reports the South China Morning Post.
The developer asked creditors to extend the payment date on its RMB 1.25 billion principal and the 5% coupon after investors exercised their put option, which requires Jinke to pay by May 28. The vast majority of the bondholders, with RMB 1.24 billion of the face value of the RMB 1.25 billion issue, exercised the put option.
“Given the balance sheet situation, cash collections from sales and liabilities, we hope to extend this bond for one year to have the time to recover our cash flow,” said Song Ke, Jinke’s vice-president and financial manager during an investors’ call.
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