The embattled property developer, China Evergrande Group, will have six months to meet its debt service obligations.

Evergrande’s onshore bondholders have agreed with the group’s proposal to defer interest payments for six months.

As the Wall Street Journal reported, China Evergrande sent a securities filing to the Shenzhen Stock Exchange on September 23.

The filing showed that the bondholders approved the proposed 2020 bond interest payment deferral at a bondholder meeting.

The property developer issued $565 million (4 billion yuan) of five-year bonds at a coupon rate of 5.8%. 

With the six-month delay, the new extended repayment time is March 23, 2023.

China Evergrande is the world’s most indebted real estate developer, with more than $300 billion in debt and other liabilities.

The group defaulted on its dollar bonds in December 2021.

Since then, the ailing developer has been seeking to reach a deal with its creditors. 

It missed an offshore restructuring plan deadline in July and has pledged to submit the plan by the end of this year.

Financial Times reported that Evergrande chairman Hui Ka Yan said the group pledged to resume construction of all stalled property projects by the end of September amid a nationwide mortgage boycott. The pledge means they would resume construction of 38 remaining projects and accelerate 62 restarted projects to normal.

At the meeting, Evergrande revealed that it had resumed the construction of 668 unfinished projects among 706 pre-sold projects nationwide that need to be completed and delivered to house buyers.

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