Greentown launches tender to prevent default

An attractive exit price of 85 cents on the dollar increases the chances that the property developer will succeed in buying back most of its $400 million high-yield bond.

Chinese real estate developer Greentown China Holdings, which is currently trying to buy back a $400 million 9% bond issue, yesterday said that its revenues increased by 15.6% to Rmb6.6 billion $968 million, while its net profit dropped 41% to Rmb540.3 million.

While this doesn't sound too bad for a company operating in China's troubled property sector, equity investors were unimpressed and pushed the company's share price 6.8% lower on the day. No doubt, the sell-off was partly triggered...

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