China Fortune Land to set up US$3.5 billion trust fund to help pay debt
BEIJING : China Fortune Land Development Co will set up a trust fund worth about 25.5 billion yuan (US$3.50 billion) and use the proceeds to pay off its US$3.33 billion financial debts, it said on Friday.
The move is part of a debt restructuring plan unveiled in October 2021 with the debt-ridden developer seeking various ways to ease a liquidity crunch.
"Affected by multiple factors such as the macroeconomic, industry, and credit environment, liquidity has become tight in phases since the fourth quarter of 2020," China Fortune Land said in a filing to the Shanghai Stock Exchange.
The company's overdue debt stood at 24.3 billion yuan as of Oct. 31, China Fortune Land said.
(US$1 = 7.2925 Chinese yuan renminbi)
(Reporting by Ella Cao and Ethan Wang in Beijing, Twinnie Siu in Hong Kong; editing by Alison Williams and Jason Neely)
Stay in the know. Anytime. Anywhere.
Subscribe to our newsletter for the top features, insights and must reads delivered straight to your inbox.
By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.
