China Evergrande secures bond extension

China Evergrande has secured an extension on a defaulted bond of more than $250 million dollars.

That's according to financial provider REDD on Thursday.

Evergrande was once China's top-selling property developer but its now reeling under more than $300 billion dollars of debt and is lumbering towards what's expected to be the country's largest-ever corporate default.

However, Thursday's extension offers rare respite for the embattled developer coming just a day after it failed to sell a $2.6 billion stake in its property services unit.

REDD reported that Evergrande has won a "more than three month" extension of a $260 million bond after agreeing to provide extra collateral.

Evergrande did not respond to a Reuters request for comment.

News of the extension came after Evergrande said on Wednesday it had scrapped a deal to sell a 50% stake in Evergrande Property Services Group to rival developer Hopson.

The deal is the developer's second to collapse as it scrambles to raise cash.

Two sources told Reuters last week the $1.7 billion sale of its Hong Kong headquarters had failed as buyers worry about Evergrande's financial situation.

The setback also comes just ahead of the expiry of a 30-day grace period for Evergrande to pay over $80 million for an offshore bond, which would throw the company into default.

Evergrande's troubles have prompted government officials to come out in force to tamp down fears of a broader financial crisis.

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