(Bloomberg) — China Evergrande Group’s onshore unit is seeking to delay an option for investors to demand early repayment, while China Huarong Asset Management Co. resumed trading following a $6.6 billion bailout, a type of state-orchestrated rescue that appears unlikely for Evergrande.

Hengda Real Estate is hosting an online meeting with investors, starting Friday. This will be in attempt to defer a Jan. 8 option. In the meantime, two developers have been delaying payouts to keep cash in reserve.

After trading resuming, Evergrande shares were unchanged. The company stated that it will work with authorities in Hainan to remove 39 illegally built apartments. The demolition is the latest move by local governments to seize some of Evergrande’s prized land assets.

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Chinese Developers Delay Dividends Amid Payment Pressure (11:20 a.m. HK)

Chinese realty firms delay interim dividend payments by several months. It is this latest action by businesses in a sector that has mounting debts and few fundraising options.

Zhongliang Holdings Group Co. & DaFa Properties Group Ltd. said Tuesday in Hong Kong stock exchange filings that they had been rescheduled for cash. 

Condemned Towers on China’s Hawaii Show New Threat (11:15 a.m. HK)

Evergrande faces the imminent threat from the destruction of 39 apartment blocks located on a south-facing island of China. Local governments are racing to seize land in preparation for the impending restructuring.

Evergrande has been asked by the government of Danzhou (a Hainan city) to demolish any illegal structures within 10 days. This order was signed December 30, so Evergrande could begin demolition of the condos that are almost complete by January 9.

The Hainan order is among the most extreme in a spate of government actions to seize Evergande’s property and land holdings, underscoring risks to its most-prized assets as the firm prepares for what could be the largest restructuring ever in China. At least 11 land parcels were targeted by the local authorities in recent months to be confiscated for reasons such as missing payments or idle projects. 

Evergrande Unit Proposes Delaying Bond Repayment (1:10 a.m. Hong Kong)

China Evergrande Group’s onshore unit will hold a meeting for holders of one of its local yuan-denominated bonds, as it seeks to delay an option for investors to demand early repayment.

Hengda Real Estate said that the meeting will be held online from January 7-10. This bond is its 6.98% security due 2023 at 6.98%, which amounts to 4.5 billion yuan (706 million USD). It has an option for Jan. 8, so it will be redeemed online. It proposes to modify that option date, as well as a payment of interest due on the same day in July this year.

January 6th will see the note’s suspension from trading. Bondholders will review the company plan for the changes and the adjustment wouldn’t trigger default, according to the statement. 

Huarong will resume trading after a $6.6 billion bailout (8:15 AM HK).

China Huarong will resume trading in Hong Kong Wednesday morning, after it raised $6.6 million in state-orchestrated relief that saved the financial troubled giant from a possible crisis. 

A statement submitted to Hong Kong’s stock exchange stated that the Beijing-based distressed asset manger applied to resume trading to fulfill share resumption guidelines. According to the statement, the company claimed it took steps to simplify its business structure and improve returns.

China Huarong posted a profit of 1.62 trillion yuan ($255m) for the first six months in 2021. This compares to a loss of 106.3 billion last year. A press conference will be held by Chairman Wang Zhanfeng on Wednesday. 

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