Bondholders of Hengda Real Estate, Evergrande’s onshore unit are said to have approved a plan to extend interest payment on its local 5Y bond in a meeting held on April 25-26, as per Cailian. The news comes close on the heels of market commentary that onshore creditors are better off during the real estate crisis as compared to offshore holders.
In related news, China’s OCBC Bank sued Shimao and one of its units regarding a revolving credit facility agreed to in October 2021. OCBC said that it demanded repayment of $100mn plus interest in January from the unit, which borrowed the funds. Besides, principal of $49.2mn was not yet received on the due date of March 2 with OCBC seeking that amount plus interest as compensation.