SHANGHAI, Nov 24 (Reuters) - Creditors of Yongcheng Coal & Electricity Holding Group Co have agreed to a proposed repayment plan, the bond’s chief underwriter said on Tuesday, after the company missed payments on maturing short-term commercial paper.
Creditors unanimously approved a plan for Yongcheng to first repay 50% of the principal on the 1 billion yuan ($151.88 million) short-term commercial paper, and to extend the repayment period on the remainder for 270 days, China Everbright Bank said in a statement posted on the website of the National Interbank Funding Center.
Yongcheng missed principal and interest payments on the maturing debt instrument on Nov. 10, just weeks after issuing new debt.
Yongcheng said on Monday that it was unable to meet the payment deadline for two other 1 billion yuan maturing commercial paper issues.
The defaults by Yongcheng, a state-owned automaker, and a chipmaker backed by Tsinghua University have shaken local markets, caught bondholders off guard and prompted speculation that Beijing may be renewing a deleveraging push interrupted by the COVID-19 pandemic. ($1 = 6.5840 Chinese yuan) (Reporting by Andrew Galbraith. Editing by Jane Merriman)