BEIJING – Chinese Developer Yango Group Co Ltd has reached agreement with investors to delay a 40 million yuan ($6.29 million) onshore coupon payment by six months, a source with knowledge of the matter said on Wednesday.
The agreement, first reported by online financial news service Cailianshe, came after bondholders last month rejected Yango’s request to extend the payment, due Jan. 29, by one year for the 6.9% notes worth 580 million yuan.
Yango Group declined to comment.
Shares of Shenzhen-listed Yango rose 4.4% by midday.
The developer said on Monday that Golden Credit Rating had downgraded it to BBB from AA, with outlook negative.
Seeking to avoid defaulting on debt payments, the developer last year also reached agreements with investors to extend payment dates on onshore bonds and asset-backed securities, and exchange some U.S. dollar bonds for new notes personally guaranteed by its chairman.
($1 = 6.3606 Chinese yuan renminbi)
(Reporting by Shuyan Wang in Beijing and Clare Jim in Hong Kong; Editing by Simon Cameron-Moore)