Developer China South City Faces More Tests After Debt Relief
- State-backed firm wins holder support to extend bond maturity
- Company hasn’t acquired consent for four other dollar bonds
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China South City Holdings Ltd., partially owned by the city of Shenzhen, won a reprieve after creditors agreed to extend a dollar bond maturity and lower its coupon, avoiding a default as it soon faces more payment tests ahead.
Holders of the 9% note due July 2024 — with $235 million of principal outstanding — agreed to push back its maturity date to August 2027 and halve the interest to 4.5%, according to a filing to the Hong Kong Stock Exchange Wednesday.