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China’s ‘three red lines’ policy is about to crush another developer as Yuzhou Group seeks to swap bonds, delay coupon and weaken debt covenants


China’s crushing “three red lines” policy against home developers continues to claim new victims as Yuzhou Group turned to creditors for forbearance on more than US$5 billion of debt from years of unrestrained offshore borrowing.The group is offering sweeteners to bondholders to delay repayment by a year on two dollar-denominated bonds worth US$582 million in a debt exchange plan, according to an exchange filing, citing significant short-term liquidity pressure. The notes are due this month…

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