China's Peking Founder seeks bond repayment delay to Feb 2020-sources (updated)

Peking University Resources (Holdings)

20/12/2019 08:45

(Adds proposal not yet agreed upon, Peking Founder's ownership
of Bank of Chongqing's shares)
    BEIJING/SHANGHAI, Dec 20 (Reuters) - China's Peking
University Founder Group  PEKIN.UL  asked investors on Friday to
extend the grace period to repay an overdue onshore China bond
to Feb. 21, 2020, according to two sources familiar with the
matter. 
    The company missed a payment deadline for 2 billion yuan
($285 million) worth of maturing short-term commercial paper on
Dec. 1 and had until next Monday to make up the shortfall.    
 urn:newsml:reuters.com:*:nL4N28D2KE 
    The state-owned company affiliated with a top Chinese
university proposed using Hong Kong-listed shares of Bank of
Chongqing  1963.HK  as collateral at a meeting with bondholders
in Beijing on Friday, the sources said.
    The proposal has not yet been agreed upon, according to the
sources.
    Up to $2.95 billion of Peking Founder's offshore U.S. dollar
debt could cross-default upon the onshore paper's failure,
Japanese brokerage Nomura has warned. 
    Peking Founder holds about 3% of Bank of Chongqing's shares,
according to the lender's third quarter report.
    Reuters was not immediately able to reach Peking University
Founder Group for comments. 
  ($1 = 7.0085 yuan)

 (Reporting by Xiaochong Zhang in Beijing and Andrew Galbraith
in Shanghai; Writing by Noah Sin in Hong Kong; Editing by Tom
Hogue and Muralikumar Anantharaman)
 ((Noah.Sin@thomsonreuters.com; +852 2841 5782; Reuters
Messaging: noah.sin.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/noah_sin))