Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Chinese property developer Ronshine misses interest payments on two bonds

Published 07/10/2022, 08:32 AM
Updated 07/10/2022, 08:35 AM
© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. Picture taken November 8, 2021. REUTERS/David Kirton

HONG KONG (Reuters) - Chinese property developer Ronshine China Holdings Ltd has not made interest payments on its June 2023 and December 2023 notes, totalling $27.9 million, in the latest blow to China's embattled property market.

Ronshine has not made payment of $12.798 million interest on the 8.1% senior notes due June 2023, which became due and payable on June 9 and has a 30-day grace period to pay such interest, it said in a HKEx filing late on Sunday.

The company also said it has not made payment of $15.07 million interest on the 7.35% senior notes due December 2023, which became due and payable on June 15 and has a 30-day grace period to pay the interest.

"In light of its current liquidity position, the group cannot guarantee that it will be able to perform repayment obligations of the interest on senior notes mentioned above and other senior notes when they fall due or within the relevant grace period," chairman Ou Zonghong said.

Ronshine said it has not received any notice so far regarding accelerated repayment from the holders of the June 2023 notes or the December 2023 notes.

The developer said it hoped that creditors will give it certain buffer time to resolve the funding issues, and it intends to engage external advisors to explore feasible solutions with overseas creditors to seek a solution to the relevant debts.

The statement came a week after rival Shimao Group said it missed the interest and principal payment of a $1 billion offshore bond.

© Reuters. FILE PHOTO: Surveillance cameras are seen near a real estate project under construction in Shenzhen, Guangdong province, China November 8, 2021. Picture taken November 8, 2021. REUTERS/David Kirton

China's property sector has been hit by a series of defaults on offshore debt obligations, highlighted by China Evergrande Group, once the country's top-selling developer but now the world's most indebted property company.

Three of the top five issuers - Evergrande, Kaisa Group and Sunac China - have already defaulted on their dollar bonds.

Latest comments

Where have all the Gordon Chang haters gone? Haha, looks like they'll have a TIFU story to share on reddit.
And, how many across all sector US zombie companies are about to default on their bond payments? A heck of a lot!
Why do you say that and what is a zombie company? How come no professional journalists are talking about this pending crisis?
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.