A troubled state-owned coal miner has again raised its offer to creditors as its seeks more time to repay a RMB 1 billion ($152.4 million) bond that it defaulted on earlier this month and avoid triggering further defaults on billions more in debt, reported Caixin.
Yongcheng Coal and Electricity Holding Group’s ongoing negotiations with its creditors show how quickly times have changed for China’s state-owned enterprises (SOEs). Once seen as companies without much credit risk because of their links to the state, the Henan province-based company and many other SOEs now face the real possibility of financial collapse coupled with a far less friendly regulatory environment, said Caixin.
Yongcheng Coal told bondholders on Sunday that it can repay 50% of the principal if they accept a 270-day extension for paying back the rest, sources close to the matter told Caixin. The bond was due on Nov. 10.
Over the past few days, the debt-ridden SOE has gradually raised its extension offer, the sources said. In its first proposal, it asked for the 270-day delay without immediate repayment on any of the principal. After that was rejected, it offered to repay 5% in exchange for the delay, then 30%. The offer now stands at 50%, or RMB 500 million, the sources said.
You must log in to post a comment.