Huachen Energy Co. is seeking another six-year extension on its outstanding bonds as an earlier extension deal nears expiration in December, according to people familiar with the matter. The Chinese private energy firm has approached select creditors for feedback on a revised repayment plan proposing a 6% interest rate in the first year, increasing by 0.5 percentage points annually to reach 8.5% in the sixth year. The sources, who requested anonymity due to the private nature of the discussions, confirmed the proposal is under review.

This move reflects ongoing efforts by Huachen Energy to manage its debt obligations amid challenging market conditions. The company has not publicly commented on the extension request or the proposed interest rate structure. Creditors are evaluating the plan as part of broader negotiations to restructure the firm’s debt profile.

The outcome will impact Huachen Energy’s long-term financial flexibility and creditor recovery prospects.