Evergrande’s onshore unit Hengda Real Estate said that it received bondholders’ approval to delay coupon payments on its local RMB-denominated bond. Hengda said that it can pay the coupon on its RMB 4bn ($629mn) 5.8% bond accrued earlier on September 23, 2022, and the delay will not trigger a default on the bond. The local bond has a  a put option at the end of the third year and will mature in 2025. The delay is a short-term reprieve for the indebted developer as talks on a restructuring proposal continue.

Evergrande’s dollar bonds were trading flat at 9-11 cents on the dollar.

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