Yango Group’s parent Fujian Yango Group got bondholders’ approval to delay payment of a local RMB 400mn ($63mn) bond due December 7 by one year. The agreement was reached at a second meeting with bondholders after negotiations failed earlier last week. Yango Group averted default on its dollar bonds by getting an extension from its bondholders in November. Fujian Yango however has faced the brunt with its dollar bonds topping the losers list last month after it did not get approval from its local bondholders to extend principal payment on the above bond and was downgraded to CCC- from B by S&P on heightened non-repayment risk.
Its dollar bonds continue to trade at distressed levels of 12-14 cents on the dollar.
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