SHANGHAI, (Reuters) – Chinese developer Yango Group announced Monday that it had launched an exchange offer for some U.S. dollars bonds. It is asking investors’ support to modify the terms of remaining U.S. Dollar bonds to increase its liquidity and prevent defaults.

Yango offered $25 in cash, $1,000 in new notes and $250 in cash for every $1,000 of outstanding bonds that were exchanged. It made the announcement to Hong Kong’s stock exchange. It is offering an exchange deal for its U.S. Dollar notes, due in February 2023 and January 2022 respectively, with a face value of $747m.

Company stated that government policy, credit events, and degrading consumer sentiment had reduced refinancing options for property firms, “and placed enormous pressure on short-term liquidity”.

The offer is part of an overall effort to increase liquidity and preserve options for stabilizing our operations as a continuing concern. It also avoids imminent payment defaults, holistic restructurings of debts, or other forms of financial distress.

Yango’s liquidity problem is occurring against the background of the crisis at China Evergrande Group. The Chinese Evergrande Group crisis has caused concern worldwide about China’s highly indebted property sector, worth $5 trillion, and restricted funding to other developers.

Evergrande managed to avoid a second catastrophic default on Friday by making an emergency payment for a dollar bond coupon right before the grace period ended.

Yango’s share in Shenzhen dropped more than 8% Monday morning. In the five previous sessions, they have dropped by almost a quarter.

According to data from Refinitiv, Yango currently has eight U.S. dollars bonds totaling $2.24 trillion and 14 outstanding bonds in yuan worth 13.1 billion Yuan. Refinitiv data shows that holders of February 2023 notes are entitled to early repayment. The total value of these bonds is $247 million.

The March 2022 bond of the company fell by 13% on Monday. Duration Finance reported that its yield jumped to close to 750%.