Chinese Developer Is In Fresh Trouble Months After Debt Swap
Yango Group didn’t pay $27 million before end of grace period
A Chinese developer failed to make overdue interest payments on two dollar bonds months after winning a reprieve from debt investors, the latest hit to the country’s deeply troubled offshore bond market.
The speed with which Yango Group Co. 000671 2.28% has run into trouble again shows that bond exchanges—a popular tool for developers seeking to avert default and a broader debt restructuring—won’t necessarily be enough to tide over all of these companies through a brutal industry downturn.
Some of the industry’s biggest players and largest international borrowers, such as China Evergrande Group and Kaisa Group Holdings Ltd., have already been judged in default on international debt collectively running into the tens of billions of dollars.
Because of factors “including the macroeconomic environment, the regulations on real estate and financial industry and the Covid-19 pandemic, the company is facing a temporary cash-flow issue,” Yango Group said in a filing late Thursday.
A Chinese developer failed to make overdue interest payments on two dollar bonds months after winning a reprieve from debt investors, the latest hit to the country’s deeply troubled offshore bond market.
The speed with which Yango Group Co. 000671 2.28% has run into trouble again shows that bond exchanges—a popular tool for developers seeking to avert default and a broader debt restructuring—won’t necessarily be enough to tide over all of these companies through a brutal industry downturn.
Some of the industry’s biggest players and largest international borrowers, such as China Evergrande Group and Kaisa Group Holdings Ltd., have already been judged in default on international debt collectively running into the tens of billions of dollars.
Because of factors “including the macroeconomic environment, the regulations on real estate and financial industry and the Covid-19 pandemic, the company is facing a temporary cash-flow issue,” Yango Group said in a filing late Thursday.