Property developer China Fortune Land Development said it has completed the restructuring of entire onshore and offshore bonds, including the company’s 14 bonds worth 29.1 billion yuan and its subsidiary’s 7 bonds worth 8 billion yuan, according to a filing to the Shanghai Stock Exchange.
China Fortune Land Development will sell assets to repay creditors 30% of the principal in cash, the firm said. It will set up a trust plan with property assets held by the company and offset the redemption value not exceeding 16.7% of the principal of the bonds with the share of trust income rights, it added.
The remaining principal of the bonds will be rolled over for eight years, with the annual interest rate reduced to 2.5 percent, it said.
China Fortune Land defaulted in February 2021 amid a massive liquidity crisis across China’s real estate sector. The homebuilder plans to resume construction on nearly 8.4 million square meters of property this year, having completed 7.2 million square meters, it said.
China Fortune Land’s operating income jumped 40% year over year to 5.9 billion yuan in the first three months of this year, while net profit tumbled 7 3% to 738 million yuan. Its total assets were worth 384.1 billion yuan at the end of the first quarter.