China South City Holdings said it would not have enough cash to pay interest on its foreign-currency debt this month, as the property developer struggles to win the necessary support from creditors to restructure five bonds totalling $1.35 billion maturing in 2024, reports the South China Morning Post.
The state-backed developer said holders of 69.8% of the bonds on aggregate have voted in favour of its proposals to extend the bond maturities and halve their coupon rates, according to a stock exchange filing on Monday. Consent for one of the five bonds has surpassed the 75% threshold, it added, refuting a media report.
The five dollar bonds each mature in April, June, July, October and December next year. China South City started its consent process on December 4, asking bondholders to extend the maturities by 33 to 39 months, and halve the annual coupon rate to 4.5%, according to its proposals.