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Wuzhou International negotiates with creditors to delay repayment

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Wuzhou International negotiates with creditors to delay repayment

Wuzhou International Holdings Ltd. said it is currently in discussions with certain creditors to restructure its debt amid the financial difficulties it is facing.

According to the China-based real estate developer, its management is "confident" the solution to its financial problems lies in its negotiations with creditors to delay the repayment of loans amounting to 1.00 billion yuan that stemmed from an event of a default relating to a US$300.0 million issuance of 13.75% senior notes due 2018.

The company added that it is also in talks with financial institutions for further funding. It is also considering selling some of its assets, proceeds from which will be used to offset its debts. However, its management has yet to determine the amount of assets to be disposed of to settle its debt repayment.

Despite its financial challenges, the company said its business operations and continuity will not be deeply affected, but a decrease in future revenue is expected because of the planned sale of its assets. Wuzhou International also revealed that seven of its developments have been halted due to its financing woes.

Wuzhou International hired RSM Corporate Advisory (Hong Kong) Ltd. to be its independent restructuring adviser to assess its financial position and evaluate its options. Trading of the company's notes on the Hong Kong stock exchange remain suspended until further notice, according to a release.

As of Aug. 13, US$1 was equivalent to 6.89 yuan.