Another embattled Chinese developer has sought to delay an onshore bond payment.
Powerlong Real Estate Holdings has asked for a pause on 600 million yuan ($89 million) of onshore bonds due on July 15 and offered to repay the principal in batches over one year.
In a proposal to its bondholders, Hong Kong-listed Powerlong aims to pay 5% of the principal on the due date of the bonds, 15% of the principal after six months, and the remaining 80% after 12 months, sources said.
Powerlong is also planning to extend payment of two onshore bonds, worth 1 billion yuan each, due in August, said the sources, who declined to be identified.
The company did not respond to a request for comment.
Cash-flows at indebted Chinese property firms have been squeezed by regulatory curbs on new borrowing and poor sales amid cautious buyer sentiment since last year.
A string of offshore bond defaults by China Evergrande Group and others this year has further deepened concern about the beleaguered sector.
- Reuters, with additional editing by George Russell