Yuzhou Group is seeking a government bailout for its $548mn in onshore and offshore debt due April, Caixin reports. The Chinese developer is in talks with state-backed investors with the assistance of local authorities to take over some of its domestic bonds. No final agreement has been reached currently. However, if agreed upon, the deal would give Yuzhou a one year extension to repay the bonds, Caixin sources said. Yuzhou’s dollar bonds were flat at 8-9 cents on the dollar.

Sunac China said that it was unlikely that they will redeem two onshore bonds due in early April. The two bonds have a combined amount outstanding of RMB 6bn ($940mn). Sunac said it was facing  “periodic liquidity difficulties in the near future”. The news comes after downgrades by Moody’s and Fitch after it said that its annual 2021 results would be delayed, where it warned of an 85% YoY profit drop in profits. Sunac’s dollar bonds were stable at 19-20 cents on the dollar.

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