China Properties defaults on notes worth $226 million (updated)

China Properties

15/10/2021 16:52

(Adds details, background)
    Oct 15 (Reuters) - China Properties Group Ltd  1838.HK  said
on Friday it had defaulted on notes worth $226 million as it
failed to secure funds by the maturity date, joining a list of
property developers in the country that are reeling from a debt
crisis.
    The case underscores the impact of China Evergrande Group
 3333.HK , which is struggling under $305 billion in debt, on
the rest of the high-yield sector as liquidity dries up and
sales slow.
    Earlier this week, Chinese developer Sinic Holdings
 2103.HK  said it would likely default on bonds worth $250
million.  urn:newsml:reuters.com:*:nL1N2R70S9  urn:newsml:reuters.com:*:nL1N2RB0PH    
    China Properties said it had failed to secure funds by Oct.
15, the maturity date of the notes, due to a "timing mismatch"
and that it would not be able to make repayments until it had
sold or refinanced some of its assets.
    The Hong Kong-headquartered company said its controlling
shareholder Wong Sai Chung had assured he would continue to
provide support to the firm through the liquidity crisis.
    For now, the notes would be delisted from foreign bourses,
it added.

 (Reporting by Anushka Trivedi in Bengaluru; Editing by Arun
Koyyur and Anil D'Silva)
 ((Anushka.Trivedi@thomsonreuters.com; +918061823241;))