Mon Mar 1, 2021 8:51 pm High Yield Bonds  Leveraged Finance

Vocalizing a preliminary debt settlement plan for all of its outstanding onshore bonds to certain bondholders, China Fortune Land Development (CFLD) may extend their principal payment by three to five years with no upfront cash payment or credit enhancement. In order for these extensions to occur the industrial park and property developer will need to negotiate the terms with bond holders in the coming weeks. Although the negotiations are pending, there is concern coming from bondholders about the long principal extension period and about a lack of asset disposal plans due to the absence of upfront payments or credit enhancements. 

Bondholders will also be meeting Friday, Feb. 26, to discuss five mutually exclusive proposals that have been submitted on cross defaults, put options and waivers of the cross defaults on certain conditions. Our Asia Core Credit team has broken down the situation on China Fortune Land Development as well as the company’s capital structure in relation to the negotiations. Read our full analysis here: 

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