Creditors seize collateral from Chinese developer Oceanwide after missed payment

China Oceanwide Holdings

28/10/2021 07:37

SHANGHAI, Oct 28 (Reuters) - Chinese developer Oceanwide
Holdings Co Ltd  000046.SZ  said on Thursday that holders of
corporate debt issued by two of its offshore units have taken
possession of the debt's collateral after the units failed to
repay the maturing notes.
    In a Shenzhen Stock Exchange filing, Oceanwide said that the
company was in active talks with holders of the two Hong Kong
dollar notes, worth a combined 2.5 billion Hong Kong dollars
($321.46 million), in pursuit of a solution.
    Oceanwide also said it was assessing the impact of the share
and project collateral takeover on its operations and finances.
    The announcement is the latest illustration of financial
strains on Chinese developers as real estate giant China
Evergrande Group  3333.HK  continues to grapple with its $300
billion in liabilities, and as developers and regulators seek to
contain the fallout from its debt crisis.  urn:newsml:reuters.com:*:nL1N2RN0KL
    Oceanwide Holdings International Co issued 1.4 billion Hong
Kong dollars worth of notes to a Singapore-based financial
services firm in March 2019, using its shares in China Oceanwide
Holdings  0715.HK  and a San Francisco project as collateral,
Oceanwide said.
    Another unit, Oceanwide Holdings International Financial
Development Co, had issued notes worth 1.1 billion Hong Kong
dollars to Spring Progress Investment Solutions Ltd, Oceanwide
said.
    Oceanwide Holdings International Financial Development used
its shares in two companies, including China Tonghai
International Financial  0952.HK , and a San Francisco project
as collateral.

($1 = 7.7771 Hong Kong dollars)

 (Reporting by Andrew Galbraith and Samuel Shen; Editing by Ana
Nicolaci da Costa)
 ((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging:
andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))