Powerlong Real Estate’s interest payment, due on October 30, had a grace period of 30 days for the company to fulfill its financial obligation. However, the non-payment now puts the company at risk of default under specific offshore long-term interest-bearing obligations.
BENGALURU: In a recent exchange filing, Powerlong Real Estate sounded an alarm, indicating the potential risk of debt default as the company faces challenges in covering both existing and future liabilities. The warning places Powerlong among the latest Chinese property developers grappling with financial uncertainties.
The company also revealed its failure to make a $15.9 million interest payment on its 5.95% senior notes due in April 2025, as per an exchange filing. These senior notes, listed on the Singapore Exchange, have added to the financial woes of Powerlong Real Estate.
The Chinese property market has been under intense pressure due to a regulatory crackdown since 2020, with authorities taking measures to curb excessive debt, thereby tightening liquidity and elevating default risks for developers.
Powerlong Real Estate’s interest payment, due on October 30, had a grace period of 30 days for the company to fulfill its financial obligation. However, the non-payment now puts the company at risk of default under specific offshore long-term interest-bearing obligations.
In response to these challenges, Powerlong conveyed its commitment to ensuring the timely delivery of ongoing property development projects. This strategic move aims to secure cash resources for sustainable development amidst the prevailing financial uncertainties. The company is navigating a challenging landscape, working diligently to address financial concerns and uphold its commitment to project deliveries.
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