Dalian Wanda Group Co. sold a stake in one of its entertainment units for 2.26 billion yuan ($314 million) on the cusp of a deadline to repay a maturing dollar bond, raising odds the Chinese conglomerate will avoid an imminent default.
Concern over Wanda’s ability to repay a $400 million note by Monday has rocked China’s dollar bond market in recent weeks, driving wild price swings in the conglomerate’s notes and those of some peers. Wanda had until recently been one of the few property-related Chinese issuers to avoid default amid a multi-year debt crisis that has touched nearly every corner of the industry.
Wanda agreed to sell a 49% stake in a unit of Beijing Wanda Cultural Industry Group Co. to China Ruyi Holdings Ltd., according to a Hong Kong exchange filing on Sunday.
Bloomberg reported last week that a Wanda unit had told some creditors it was finalizing an asset disposal to help pay down the dollar bond. The note traded around 87 cents on the dollar at the end of last week, after falling to around 60 cents a few days earlier.
