Distressed Peking University Founder Group (PUFG), backed by state-owned Peking University, is said to be considering a debt restructuring plan that would involve a 70% haircut for unsecured creditors, as per people familiar with the matter reported by Bloomberg. The sources added that PUFG’s administrator is putting together a draft plan with recovery rates of 31% to 61% for the unsecured creditors. PUFG made waves in the credit markets in October 2019 when liquidity concerns at the company led to a massive sell-off in its offshore dollar bonds issued by Dawn Victor Ltd, Kunzhi Ltd and Nuoxi Capital. It entered into court-led restructuring in February 2020 after defaulting on $3bn of dollar bonds and CNY 34.5bn ($5.3bn) of local currency bonds. The dollar bonds with maturities between 2020 and 2023 are currently trading at distressed levels of 15-30 cents on the dollar. A debt restructuring proposal is expected to be submitted by April 30, unless the deadline is further extended.