By P.R. Venkat

Modern Land (China) Co. has withdrawn its plan seeking permission from its debt holders to allow the Chinese property developer to delay repaying a $250 million bond, citing liquidity issues.

The company, which along with many Chinese developers are facing financial stress, said late Wednesday that it is in talks to engage a financial adviser to help assess Modern Land's capital structure, liquidity profile and financial condition.

Modern Land said on Oct. 11 that it wanted to delay repaying the debt of 12.85% bonds due Oct. 25 by three months in order to improve its liquidity, manage cash flows and "avoid any potential default under the notes."

It had also said then that its chairman and president would together provide the equivalent of $124 million in loans, helping to shore up the group's finances.

"The company continues to experience liquidity issues and has determined that consummation of the consent solicitation and effecting the proposed amendments will not be in the best interest of the company and other stakeholders of the company, including holders of the notes," Modern Land said Wednesday.

Restrictions on credit to the sector have helped trigger a crisis at one of China's largest property developers, China Evergrande Group, and put pressure more broadly on developers' stocks and bonds.

Shares of Modern Land have fallen more than 50% this year. The company's contracted sales for September of properties and car-parking spaces totaled about 3.56 billion yuan, or the equivalent of about $553 million. That was about 22% lower than the year-earlier period.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

10-20-21 1821ET