Chinese property developer Ronshine misses interest payments on two bonds

Ronshine China Holdings

10/07/2022 13:28

HONG KONG, July 10 (Reuters) - Chinese property developer
Ronshine China Holdings Ltd  3301.HK  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  0813.HK 
said it missed the interest and principal payment of a $1
billion offshore bond.  urn:newsml:reuters.com:*:nL1N2YK07R
    China's property sector has been hit by a series of defaults
on offshore debt obligations, highlighted by China Evergrande
Group  3333.HK , 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
 1638.HK  and Sunac China  1918.HK  - have already defaulted on
their dollar bonds.
    

 (Reporting by Donny Kwok; editing by David Evans)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470;))