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China South City is awaiting bondholders’ consent on its debt restructuring proposal that would allow it to extend bond maturities and avoid a default. According to the exchange filing on Wednesday, creditors of the 9% July 2024s had agreed to extend its maturity date to August 2027 and halve the interest to 4.5%, which provided an immediate relief as the grace period for the coupon payment was set to expire on Wednesday. However, the company is still awaiting consent on the remaining 2024s that have an outstanding principal amount of $1.1bn. The company’s next interest payment of $13mn on the 9% June 2024s comes due on 26 December 2023, for which it will have a 30-day grace period to avoid a default, according to Bloomberg. Earlier this week, the company had warned of non-interest payment on its notes.
Its 9% bonds due June 2024 are trading at distressed levels of 25.5 cents on the dollar.
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