China's Yango Group Wants Repayments To Investors Delayed

Chinese developer Yango Group has asked holders of its asset-backed securities to refrain from asking for repayment for a year over concerns it would struggle to pay, financial intelligence provider Redd reported.

Photo Insert: China's property sector woes continue.

Yango's 1.27 billion yuan ($198 million) 6.5% asset-backed securities mature in November 2022 but give holders the option to demand repayment next month, Andrew Galbraith also reported for Reuters.

In a report late on Friday, Redd cited four unnamed sources as saying the company had made the request to investors on Friday, at a closed-door meeting in Shanghai attended by senior executives.

Yango has no plans to provide credit enhancements to encourage holders to approve the extension, and executives indicated the company "could have trouble paying" if investors declined to extend the put date, the report said.

No bondholders had approved the plan by the end of the meeting, Redd reported.

In addition to its asset-backed securities, Yango has eight outstanding US dollar bonds worth a total of $2.24 billion and 14 outstanding yuan-denominated bonds worth 13.1 billion yuan, according to Refinitiv data.

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