Evergrande crisis: developer Modern Land (China) seeks debt extension, to repay US$87.5 million early

Name: Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch
Uploaded: 2021-10-11T09:00:16.000Z
Duration: 2 min 28 s
Description: Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch

Beijing-based developer seeks an extension on US$250 million bond to avoid ‘any potential payment default’

Debt extension request comes as concerns continue to swirl about a potential Evergrande default and the Chinese property sector

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Zhang Peng, Modern Land (China)’s president, speaks during an interview in Hong Kong in this file photo from 2016. Photo: Edmond So

Chad BrayandPearl Liu

Published: 5:00pm, 11 Oct 2021Updated: 8:10pm, 11 Oct 2021

Property developer Modern Land (China) on Monday asked its debt holders for a three-month extension on a US$250 million bond set to come due later this month to avoid a potential default, as concerns continue to swirl around the embattled China Evergrande Group and the Chinese property sector’s debt levels.

The Beijing-based builder said it was seeking bondholder approval to extend the maturity of its 12.85 per cent senior notes from October 25 to January 25 and to repay US$87.5 million of the principal amount.

Modern Land said it wanted to extend the maturity period to improve its “liquidity and cash-flow management and to avoid any potential payment default”, according to a regulatory filing with the Singapore Exchange. Its senior notes are listed in Singapore.

The Hong Kong-listed company separately said that its chairman, Zhang Lei, and its president, Zhang Peng, had agreed to provide about 800 million yuan (US$124 million) in shareholder loans, with the expectation that they would be completed in two to three months.

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Angry protest at headquarters of China Evergrande as property giant faces liquidity crunch

“Zhang Lei expressed that he would consider giving continuous support in due course, depending on the group’s financial situation. It demonstrates his continuous commitment to the group and his unwavering confidence in the group’s businesses and development,” the company said in a filing with the Hong Kong stock exchange.

Modern Land did not immediately respond to a request for further comment. The company’s shares declined by as much as 1.1 per cent in Monday’s afternoon session in Hong Kong.

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