Evergrande seeks onshore bond payment delay

China Evergrande will look for a six-month delay on a $157 million onshore bond payment.

The plea is due to be put forward by the property giant at a meeting with bond holders this weekend.

The delay is being sought due to the - quote - 'current operational status' of the issuer.

That's according to a statement released Wednesday (January 5) by Hengda - Evergrande's flagship property arm.

The company wants to delay redemption and coupon payments on one bond from January to July.

It will also give creditors the option to sell bonds back to the issuer this weekend.

Hengda said trading in the bonds will be stopped from January 6th ahead of the meeting.

It all comes as Evergrande struggles to service more than $300 billion in liabilities.

That includes almost $20 billion of offshore bonds classed as cross-default by ratings agencies last month after it missed payments.

Evergrande has not yet missed any bond payments onshore - which are more senior than the offshore debt.

The firm failed to pay $82.5 million in offshore interest payments at the end of a month-long grace period last month.

Chinese authorities have reassured markets that Evergrande's problems can be contained.

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