Since the trading suspension of its shares this Monday, Evergrande has been increasingly focused on negotiating with domestic investors of its bonds and wealth management products.
After being declared to have defaulted in early December over missed offshore bond payments, China Evergrande is now increasingly shifting its focus towards domestic investors.
Following a trading suspension of its Hong Kong-listed shares over a government order to demolish 39 buildings in a Hainan-based project, Evergrande is now ramping up efforts to negotiate for better terms for its financial obligations.
Debt Delay
In the latest development, Evergrande will seek a six-month delay in the redemption and coupon payments of a 4.5 billion yuan ($157 million) onshore bond over the «current operational status» of the issuer and flagship property arm Hengda, according to a statement.
In an online meeting scheduled from January 7 to 10, yuan bondholders will vote on several proposals including one that seeks to defer redemption and payment of the bond from January 8 to July 8.
«A postponement is expected,» according to a «Reuters» report citing an unnamed holder of the bonds in question. «Given the company is under pressure to prioritize wages […] and apartments.»
Wealth Management Protest
And earlier this week, Evergrande also reportedly faced a protest from a crowd of around 100 over worries about wealth management products it issued and the potential for sacrificed returns.
The protests broke out on Tuesday in response to changes in Evergrande’s plans to repay wealth management product investors, shifting from the original plan to repay 10 percent by the end of the month when the product matures to an 8,000 yuan ($1,256) per month principal payment for three months starting in January.
More than 800,000 individuals have reportedly bought such products – lured by attractive yields that reach 12 percent alongside gifts such as Dyson air purifiers and Gucci bags – that have raised more than 100 billion yuan in the past five years.
