Published: November 1, 2023 at 8:45 PM ET
Written by PR Venkat
Zhenro Properties said significant progress has been made in offshore debt restructuring, allowing Chinese companies to issue new US dollar-denominated bonds starting next year.
The developer has entered into restructuring term sheet agreements with certain debtors that hold approximately 27.1% of the total outstanding principal amount.
Written by PR Venkat
Zhenro Properties said significant progress has been made in offshore debt restructuring, allowing Chinese companies to issue new US dollar-denominated bonds starting next year.
The developer announced late Wednesday that it has entered into restructuring term sheet agreements with certain debtors that hold approximately 27.1% of the aggregate principal amount of senior notes and perpetual securities issued by Zhenro.
The company said its offshore creditors could exchange their offshore debt and accrued interest into new US dollar-denominated senior notes in Series 4 with maturities of four to seven years.
Like many Chinese real estate developers, Jinro is facing a severe liquidity crisis as the sector is under extreme stress due to declining property sales and weak consumer confidence.
The economic downturn has caused several development companies, including China Evergrande Group and Sunac China Holdings, to default.
Zhenro said some of the assets will also be provided as collateral for the new note.
Zhenro said that if the restructuring plan is accepted by the debtors and approved by the relevant authorities, it will provide the necessary financial flexibility and time to stabilize the business.
As of the end of June, Jinro had approximately $3.9 billion in interest-bearing offshore debt, consisting primarily of US dollar and renminbi denominated notes with a total principal amount of approximately $3.4 billion, and perpetual securities with a total principal amount of $200 million. has been done.
Email PR Venkat at venkat.pr@wsj.com.