Baolong Industrial, the real estate arm of Shanghai-based developer Baolong Group, is proposing a restructuring of three medium-term notes totaling approximately 2.0475 billion yuan, according to a convenor announcement dated August 3.
Restructuring Proposal
Under the plan, principal repayment on the three notes would be extended to 2034, giving the company substantial breathing room. Creditors would be offered four settlement options: cash repurchase, asset-for-debt swaps, equity transfers, and general debt restructuring.
The proposal reflects the continuing trend of Chinese developers seeking liability management solutions as they work through the prolonged property downturn. Bondholders will vote on the plan in the coming weeks.
Industry-Wide Pattern
Baolong joins a growing list of developers restructuring their onshore bonds, including Rongsheng Group, which is restructuring eight corporate bonds worth approximately 8.484 billion yuan, and Fantasia, whose offshore restructuring of 44.3 billion yuan took effect in late July.
"Long-maturity extensions with multiple repayment options have become the standard template for developer debt restructurings," said a fixed-income analyst. "Creditors increasingly accept longer tenors in exchange for asset-backed security."
Asset-Backed Solutions
The inclusion of asset-for-debt options in Baolong's plan highlights developers' efforts to monetize non-core assets, including commercial properties, development projects, and equity stakes, to satisfy creditor claims without relying solely on operating cash flow.