DOMESTIC developer Agile Property Holdings Ltd. said yesterday it was in talks with banks about extending what remains of a US$475 million loan due in December.

    Shares in the company, which is valued at around US$2.1 billion, dropped by more than a fifth yesterday as they resumed trading after a week’s halt. The company last week scrapped a proposed US$360 million rights issue — which would have gone toward repaying the loan — and said its billionaire founder and chairman Chen Zhoulin had been detained.

    Agile said Chen, whose family wealth of US$3.2 billion was ranked 51st in China on the 2014 Hurun Rich list, had been required by the prosecutor in Kunming in southeastern China to stay at “a designated residence” since Sept. 30.

    Chinese property companies face tight credit and excess supply as growth in the world’s second-largest economy slows. Weaker sales have choked liquidity at some property developers, pushing them to look for fresh sources of funding.

    On a call with analysts yesterday, Agile said it was in talks with banks including HSBC Holdings, Standard Chartered and Hang Seng Bank about extending the loan.

    Agile, which is currently being run by Chen’s wife and another relative, said it would consider other funding options, including another try at a rights offer, other forms of equity financing or commercial property sales. (SD-Agencies)