Under the plan, the property giant’s headquarters is seeking to refinance all onshore loans due this year without having to repay the principal, sources said. — Bloomberg
SHANGHAI: Dalian Wanda Group Co is in talks with major Chinese banks about a loan relief plan that may allow it to extend principal repayments for some onshore borrowings as the conglomerate faces a liquidity challenge, according to people familiar with the matter.
Under the plan, the property giant’s headquarters is seeking to refinance all onshore loans due this year without having to repay the principal, said the people, asking not to be identified as the matter is private.
Industrial and Commercial Bank of China Ltd is among the creditors Wanda has consulted with since early May, the people said.
Developers are allowed to seek a “reasonable” extension of existing fundraising for as long as one year, based on a 16-point rescue package China rolled out in November.
Banks can also avoid downgrading those debts to “non-performing”.
Billionaire Wang Jianlin’s group is trying to avert a potential liquidity crunch if it fails to list a mall operator unit by the end of this year.
As part of an earlier agreement with investors, Wanda may be forced to repurchase about 30 billion yuan (RM19bil) of equity if the initial public offering doesn’t happen by December.
Wanda’s dollar bonds fell at least one US cent (4.4 sen) on the dollar across the curve on Tuesday, according to credit traders.
The US$2 notes issued earlier this year are set for record lows, Bloomberg-compiled data showed.
Wanda’s discussions are at an early stage, and it’s unclear which units, if any, might obtain such arrangements from their banks, according to the people.
One of the people said the company also requested subsidiaries apply for additional new credit lines from banks. — Bloomberg
