(Yicai Global) March 1 -- China Aoyuan Group has made progress in its debt restructuring more than a year after defaulting on a US dollar bond, as some overseas creditors agreed to the real estate developer’s proposal to postpone repayment.

An ad hoc group of overseas bondholders agreed in principle to the Guangzhou-based firm’s proposal to delay repayment, Aoyuan said late yesterday. The group holds 20 percent of its outstanding offshore bonds, per the announcement.

Aoyuan proposed the moratorium to maintain stable operations and facilitate negotiations with potential investors in order to secure the restructuring of debt.

Aoyuan will publish its restructuring plan soon, and after it is approved by creditors, the firm’s shares can resume trading on the Hong Kong Stock Exchange and bring in more investors, a source close to the homebuilder told Yicai Global. The shares were suspended last April after the firm failed to disclose its financial results on time.

Hit by the downturn in China’s property market and restrictions on developer borrowing, Aoyuan defaulted in January last year. Aoyuan has 12 outstanding US dollar bonds, totaling about USD3.5 billion, of which five USD1.2 billion notes were due last year. The other seven will mature between this year and 2027, according to yesterday’s announcement.

Aoyuan has not yet disclosed any information about potential investors in its debt restructuring.

Editors: Dou Shicong, Future Costaglione