Creditors ofChina Fortune Land Developmenthave agreed to extend the payment deadline on RMB 17.8 billion ($2.7 billion) in debt after the property developer defaulted earlier this year, reported Caixin.
With the agreement and strong support from the government in North China’s Hebei province, the developer has finally taken a step toward defusing its debt crisis.
At an online meeting with China Fortune’s creditor committee on Wednesday, Chief Financial Officer Wu Zhongbing announced that the company had RMB 220 billion in outstanding interest-bearing debt as of that day, according to several creditors with knowledge of the matter. Wu said the company had failed to pay RMB 37 billion of the debt on time, including bank loans, trust loans and bonds issued overseas, according to the company’s exchange filings.
Many creditors only agreed to extend the repayment deadline until June because they still want to see a plan before making any decision about a further extension, sources with knowledge of the matter told Caixin.