China Aoyuan denied reports that it defaulted on its trust product saying it was involved in a financial dispute involving its joint venture which borrowed money and that the company is working with creditor for a solution. Bloomberg yesterday cited a media report that Aoyuan defaulted on RMB 66mn ($10mn) of an overall RMB 78mn ($12.2mn) trust loan on November 12 issued by Aoyuan’s subsidiary Zhuhai Trade Zone Qiheng Logistics and guaranteed by onshore arm Aoyuan Corp.

Aoyuan’s dollar bonds have inched higher with its 7.95% 2023s up 1 point to 29.59 cents on the dollar.

Separately,  developer Fantasia won bondholders’ agreement to postpone interest payments on its local 7.5% bonds due November 2023 by a year according to new media Cailian, citing sources. RMB 116mn ($18.1mn) in interest on the bond is coming due this week. The report said that ~20% will be paid on Thursday, with the remaining 80% to be paid a year later.

Fantasia’s dollar bonds were higher with its 11.75% 2022s up 1.6 points to 29.75 cents on the dollar.

Show Buttons
Hide Buttons