© Reuters. FILE PHOTO: The company logo is seen at the headquarters of China Evergrande Group in Shenzhen, Guangdong province, China September 26, 2021.Reuters/Aly Song/File photo
HONG KONG (Reuters) – Shares in China Evergrande Group edged higher on Friday as more developers raced to avoid default, after the world’s most indebted developer secured key to onshore bondholders Approved to defer payment of one of its bonds.
Evergrande, which has $300 billion in debt, including $19 billion in international bonds, was seen as a cross-default after missing payments last month, and Evergrande is trying to avoid a technical default at home that would make it politically sensitive. Reorganization complicates.
The company reached an agreement with bondholders on Thursday to delay redemption and interest payments for six months on 4.5 billion yuan ($707.52 million) of bonds due Jan. 8.
“Approvals are expected; bondholders don’t want to part with Evergrande right now because they want the problem to be resolved eventually,” said Lynnington, managing director of asset management at ConocoPhillips.
Shares in Evergrande were up 1.2% by 0330 GMT, while the mainland property index fell 0.2%. Its subsidiary China Evergrande New Energy Automobile Group Co Ltd rose 8.1%.
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