Chinese builder CIFI Holdings Group Co. set out some key preliminary terms for its offshore debt restructuring plan, one of the first major steps to revamp its borrowings after it missed a payment in October.
(Bloomberg) — Chinese builder CIFI Holdings Group Co. set out some key preliminary terms for its offshore debt restructuring plan, one of the first major steps to revamp its borrowings after it missed a payment in October.
The defaulter expects no haircut, meaning creditors will not be required to reduce their principal. Meanwhile, the debt maturity will be extended to no more than seven years from the date when the restructuring plan is implemented, according to an exchange filing on Friday.
CIFI may propose an option to convert some debt to equity or convertible bonds, the filing shows. The company is also considering the provision of “appropriate and practical credit enhancements,” it said, without elaborating. The terms are subject to change, and have not been agreed with any person.
The builder has joined a number of Chinese defaulters showing early progress in their offshore debt restructuring plans as talks gather pace. The company is a unique case, as it missed an offshore payment several weeks after obtaining fresh onshore financing with state help.
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