Adding to the negative news flow, a unit of the distressed company called for a trading suspension on its onshore bonds, indicating a higher likelihood of an impending restructuring or default, as per market participants cited by Reuters. However, the recent recovery in its dollar bonds suggest that investors are expecting the developer to secure a restructuring deal. Its
8.25% bonds due March 2022 have risen ~5 points since Tuesday to 31 cents on the dollar while its
12% bonds due January 2024 have risen ~3 points to 28.95 cents on the dollar. Dollar bonds issued by its units
Hengda and
Scenery Journey however continue to trade lower at distressed levels of ~17.5 cents on the dollar.