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China Vanke’s dollar bondholders are said to be urging the company to consider options including a debt-to-equity swap to avoid getting sidelined in a restructuring. The proposals were sent to the company through debt advisory firm PJT Partners. The creditors also suggested exchanging existing bonds at a discount to their face value for new notes backed by offshore assets, according to reports. In the letter, bondholders also urged the company not to use offshore assets as credit enhancements. The bondholders hold about $200mn of Vanke’s two dollar bonds, due in 2027 and 2029.
Vanke’s dollar bonds continue to trade at distressed levels of 24 cents on the dollar.
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