In an exchange filing, sunshine 100 said that it was not prepared to pay back the principal and interest of a 10.5% bond due Dec 5, “owing to liquidity issues arising from the adverse impact of several factors including the macroeconomic environment and the real estate industry.”
On Monday China Holdings Ltd, Chinese developer Sunshine 100 said that due to a liquidity problem it had defaulted on a 170 million dollar bond.
Stress among Chinese real estate firms is circulating, amid a debt problem at giant China Evergrande Group that’s intensifying ahead of a Monday deadline for two coupon payments.
The information was disclosed days after bigger rival China Evergrande Group said there was no assurance it would have sufficient reserves to meet debt repayments.
It indicates that some developers proceed to strive even as Beijing has begun to marginally relax financing to meet developers’ common funding requirements.
In an exchange filing, sunshine 100 said that it was not prepared to pay back the principal and interest of a 10.5% bond due Dec 5, “owing to liquidity issues arising from the adverse impact of several factors including the macroeconomic environment and the real estate industry.”
The company said the negligence would also trigger cross-default provisions under particular other debt instruments.
Early this year China harshen real estate curbs, deepening debt issues at Evergrande and some other highly leveraged developers.
This triggered fears that their potential downfall could bring shockwaves through the country’s real estate sector and beyond.
Since October, to confront developers’ normal financing requirements, Chinese regulators have persuaded banks to relax lending.
Also, they authorized more real estate associations to issue bonds in the domestic market.
Buying a home is a significant milestone, but the hefty price tag isn't the only…
Tax lien certificates are those that are given to investors who demonstrate their interest in…
The Hindu Marriage Act of 1955 and the Hindu Succession Act of 1955, respectively, set…
Paying a house rent is an important and recurring monthly expense for an individual. Generally,…
Investing in real estate necessitates a lot of research, legwork, and hefty investments. Hence, a…
You're buying or selling a property – an exciting time filled with possibilities. But amidst…
This website uses cookies.