Notes due July 2023 of Wanda Properties Overseas dropped to 90.453 cents on the dollar by Monday afternoon, compared to 92 on Friday.
The 2024 notes issued by Wanda Properties International Co slipped to 71.006 cents from 75, while 2026 notes by Wanda Properties Global declined to 58.237 from 63. Zhuhai Wanda Commercial Management Group Co Ltd, a unit of China's largest commercial property developer, has applied for an initial public offering in Hong Kong, but is now also subject to Chinese securities regulator's approval due to new rules this year. It is not clear when the approvals will be forthcoming.
Debtwire reported last week Wanda was talking to creditors of three offshore loans totalling $1.3 billion about a waiver of an option to demand early repayment if its unit fails to complete the IPO by early May. A source close to Wanda said on Monday the firm and the creditors have reached an agreement to extend the IPO deadline to Nov. 30, so the repayment risk will not be triggered in the near term. Wanda unit's IPO timing has also drawn an enquiry previously from the China Securities Regulator Commission.
The regulator questioned in late March Wanda's short-term
repayment ability, citing Zhuhai Wanda's IPO application
documents to the Hong Kong stock exchange and saying that if it
fails to list by end of 2023 it will have to repurchase shares
worth 30 billion yuan ($4.35 billion) from its pre-IPO
investors.
Wanda was given three months to answer the questions.
($1 = 6.9013 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Muralikumar Anantharaman)
