Second China State-backed Group Tests Offshore Bondholder Mood With Restructuring Deal

Bondholders caught in a $850 million state-backed corporate default in China were split over an offer to repay them roughly 40 cents on the dollar, in only the second distressed test of the country’s offshore bond markets in 20 years, Reuters reported. Qinghai Provincial Investment Group (QPIG), an energy and mining conglomerate, missed an interest payment on Jan. 10, triggering defaults on three dollar-denominated bonds. On Feb. 5, a unit of Qinghai Provincial Investment and Development Co - an investment vehicle which like QPIG is controlled by the Qinghai government - offered to pay bondholders between 36.75 cents and 41.19 cents for every dollar of debt, depending on the maturity of the bonds held. Investors owning 54% of the bonds accepted the offer, according to the tender results released on Tuesday evening, only slightly outweighing those who said nay. Read more

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