Global Trade

China developer Yango to concern $670 million new notes in oath switch

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Cash-strapped Yango Group Co Ltd, a Chinese developer, announced it will issue $669.9 million in fresh notes as part of a debt exchange, with most bondholders agreeing to extend the repayment date to September 2022.

In order to avoid defaulting on debt payments, the company has urged holders of $747 million in dollar bond tranches to exchange them for new notes personally guaranteed by its chairman.

Yango said in a filing on Thursday that the new notes will be issued on or around Nov. 23 and will mature on Sept. 15, 2022, with a 10.25 percent annual interest rate.

Yango said in a filing on Thursday that the new notes will be issued on or around Nov. 23 and will mature on Sept. 15, 2022, with a 10.25 percent annual interest rate.

The company’s $200 million 5.3 percent January 2022, $300 million 10.25 percent March 2022, and $247 million 10% February 2023 bonds will all be extended.

It’s also asking bondholders for extensions on five additional debts. Meanwhile, the Shanghai-based developer announced on Friday on the Shenzhen Stock Exchange’s investor platform that investors for three onshore bonds due in November have agreed to extend the debt by one year.

It also reached agreements with investors earlier this month to extend payment dates on asset-backed securities, according to sources.

Story by : Norvisi Mawunyegah