Chinese developer SCE Group seeks offshore debt restructuring after default

China SCE group

04/10/2023 06:13

HONG KONG, Oct 4 (Reuters) - China SCE Group  1966.HK 
said on Wednesday a non-payment on a syndicated loan has
triggered an event of default under its dollar bonds and it
would explore a holistic solution to all its debt.     
    The Xiamen-based company is the latest to join a long list
of Chinese property developers who have defaulted their offshore
debt and begun a restructuring process. But only a handful have
announced restructuring terms so far. 
    SCE said in a filing it will suspend trading in its four
dollar bonds worth a total of $1.8 billion from Thursday. 
    "The group's liquid cash and bank deposits may not be
sufficient to meet its current and future obligations," the
developer said, citing declining sales and tightening liquidity
since the second quarter .
    It said the payment it did not make was on an instalment of
principal and interest worth $61 million of a March 2021 
syndicated loan, which may result in demands for early repayment
from its other creditors. It has not received such demand yet,
however, it added.    
    Shares of SCE did not trade in the early afternoon shortly
following the announcement. They rose 3.5% in the morning.

 (Reporting by Clare Jim; Editing by Christian Schmollinger)
 ((clare.jim@thomsonreuters.com;))