Distressed Chinese real estate developer China Fortune Land Development (CFLD) saw its dollar bonds jump this morning following the company’s announcement that it is working on a risk mitigation plan. In an exchange filing, CFLD called for a 5 day trading halt on its shares as “the company will be developing a comprehensive risk mitigation plan under the guidance of provincial and municipal governments”. The company added that it intends to communicate the comprehensive risk mitigation plan and related matters with creditors as soon as possible. The statement concluded by stating, “Based on the basic premise of ‘not evading debts’, and in accordance with the principles of marketization, rule of law, fairness and justice, and categorized policy implementation, CFLD will steadily resolve its debt risks and safeguard the legitimate rights and interests of creditors in accordance with the law.”
CFLD’s 8.625% 2021s led the rally, up 11.7% to 39.4 cents on the dollar.
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