China Cinda Asset offers about $1 bln liquidity support to Peking Founder -sources (updated)

Peking University Resources (Holdings)

25/12/2019 07:09

(Adds details)
    BEIJING/SHANGHAI, Dec 25 (Reuters) - China Cinda Asset
Management Group  1359.HK  recently offered 8 billion yuan
($1.14 billion) worth of short-term liquidity support to Peking
University Founder Group, two people with direct knowledge of
the matter said on Wednesday.
    The funds were provided last week, one of them said.
    The liquidity support comes at a time when Peking Founder
has received investor approval to extend the grace period to
repay an overdue onshore China bond until Feb. 21, 2020.
    It missed a payment deadline for 2 billion yuan worth of
maturing short-term commercial paper on Dec. 1.  urn:newsml:reuters.com:*:nB9N28E031
    Sources have told Reuters that Peking Founder has already
used up another 8 billion yuan it had previously borrowed from
Cinda Asset, and that it still faced an average of 10 billion
yuan of debt maturing each month.  urn:newsml:reuters.com:*:nL4N28D2KE
    Peking Founder and bad-debt manager Cinda, one of China's
four major asset management firms, did not immediately respond
to Reuters requests for comments.
 ($1 = 6.9990 Chinese yuan)

 (Reporting by Zhang Xiaochong and Ryan Woo in Beijing; Writing
by Winni Zhou in Shanghai; Editing by Muralikumar Anantharaman
and Himani Sarkar)
 ((winni.zhou@thomsonreuters.com; +86 21 2083 0100; Reuters
Messaging: winni.zhou.thomsonreuters.com@reuters.net))