Modern Land shares dive after some bondholders demand early repayment (updated)

Modern Land (China)

10/01/2022 02:24

(Adds Shimao and Evergrande development, changes slug for media
clients)
    HONG KONG, Jan 10 (Reuters) - Shares of Chinese developer
Modern Land  1107.HK  plunged nearly  40% to all-time lows on
resumption of trade on Monday after it said it has been in talks
with noteholders on a restructuring plan for its $1.3 billion of
offshore bonds.
    Modern Land said in a filing on Monday it has received
notices from certain noteholders demanding early repayment of
their senior notes, after the firm missed payment for its 12.85%
notes due Oct 25, 2021.  
    The shares, which have been suspended since Oct. 21, sank 
nearly 40% in Asia opening hours to HK$0.23, a historical low. 
    The developer said it has been in discussion with these
creditors for a waiver and it has appointed financial advisers
to formulate an overall plan for feasible remediation actions.
    Chinese developers are facing an unprecedented liquidity
squeeze due to years of regulatory curbs on borrowing, leading
to a string of offshore debt defaults, credit-rating downgrades
and sell-offs in developers' shares and bonds.
    China Evergrande Group  3333.HK , the world's most indebted
developer with more than $300 billion in liabilities, is seeking
a six-month delay in the redemption and coupon payments of a 4.5
billion yuan ($157 million) bond in a meeting with bond holders.
The outcome of the meeting is expected later Monday.
 urn:newsml:reuters.com:*:nL1N2TL02N
    Separately smaller peer Shimao Group Holdings  0813.HK ,
which defaulted on a trust loan last week, has put on sale all
of its real estate projects, including both residential and
commercial properties, Caixin reported.  urn:newsml:reuters.com:*:nL1N2TQ00Y
    The Shanghai-based property developer has struck a
preliminary deal with a Chinese state-owned company to sell its
Shimao International Plaza Shanghai, a commercial property on
Shanghai's Nanjing Road, for more than 10 billion yuan, the
report said.
    The company didn't immediately respond to a request for
comment.
    As of 0207 GMT, shares of Evergrande fell 2.8%, while Shimao
gained 5.3%.




 (Reporting by Clare Jim and Donny Kwok; Editing by Kim Coghill
& Shri Navaratnam)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))