SHANGHAI : Chinese developer Powerlong Real Estate Holdings seeks to delay payment of 600 million yuan ($89 million) of onshore bonds due on July 15 and to repay the principal in batches over one year, two sources with direct knowledge of the matter said.
In a proposal to its bondholders, Hong Kong-listed Powerlong aims to pay 5 per cent of the principal on the due date of the bonds, 15 per cent of the principal after six months, and the remaining 80 per cent after 12 months, the sources told Reuters.
Powerlong is also planning to extend payment of two onshore bonds, worth 1 billion yuan each, due in August, said the sources who declined to be identified.
The company did not respond to a Reuters request for comment.
Cash-flows at indebted Chinese property firms have been squeezed by regulatory curbs on new borrowing and poor sales amid cautious buyer sentiment since last year.
A string of offshore bond defaults by China Evergrande Group and others this year has further deepened concern about the beleaguered sector.
($1 = 6.7083 Chinese yuan renminbi)