BEIJING/SHANGHAI, Dec 20 (Reuters) - China’s Peking University Founder Group asked investors on Friday to extend the grace period to repay an overdue onshore China bond until 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.
The state-owned company affiliated with a top Chinese university proposed using Hong Kong-listed shares of Bank of Chongqing as collateral at a meeting with bondholders in Beijing on Friday, the sources said
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.
Reuters has not been 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