The proposal would require approval from creditors holding at least 75% of the note’s outstanding value, according to the document. Failure to obtain approval would mean a default event is likely to occur on May 9, the end of the 14-day grace period for the semi-annual interest payment originally due April 25, according to the document.
An affiliate of Chinese state-backed developer Sino-Ocean Group Holding Ltd. is adding to a wave of debt extensions among Chinese builders by seeking to delay a coupon payment as liquidity worsens further in the real estate sector.
Sino-Ocean Capital Holding Ltd. is proposing to set back its interest payment to October instead of April for its 6% dollar notes maturing October 2023, according to a consent solicitation document seen by Bloomberg.
