ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
China debt crunch

Investors face dilemma as Chinese developers offer bond swaps

Holders told to accept reduced and delayed repayment or take bankruptcy risk

Recent votes by investors on whether to accept bond swaps offered by beleaguered Chinese property developers have delivered mixed results.    © Reuters

HONG KONG -- Investors holding bonds issued by China's lengthening list of distressed property developers are increasingly facing a stark choice: accept proposals to postpone repayment and forgive part of the debt, or gamble on what might be recovered in a bankruptcy restructuring.

The latest developer to present this dilemma to investors is mid-sized Yuzhou Group Holdings, which was due to make a $41 million interest coupon payment to holders of two of its bonds on Thursday.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more