Chinese developer Sunshine 100 defaults on $170 mln bond

Sunshine 100 China Holdings

06/12/2021 02:59

SHANGHAI, Dec 6 (Reuters) - Chinese developer Sunshine 100
China Holdings Ltd said on Monday it had defaulted on a $170
million dollar bond due to liquidity issues.
    The announcement comes days after bigger rival China
Evergrande Group  3333.HK  said there was no guarantee it would
have enough funds to meet debt repayments. 
    It shows some developers continue to struggle even as
Beijing has started to marginally relax financing to meet
developers' normal funding needs. 
    Sunshine 100  2608.HK  said in an exchange filing that it
was not able to repay the principal and interest of a 10.5% bond
due Dec 5, "owing to liquidity issues arising from the adverse
impact of a number of factors including the macroeconomic
environment and the real estate industry."
    The delinquency would also trigger cross default provisions
under certain other debt instruments, the company said.
    China toughened real estate curbs early this year,
exacerbating debt problems at Evergrande and some other highly
leveraged developers, triggering fears that their potential
collapse could send shockwaves through the country's real estate
sector and beyond.
    Since October, Chinese regulators have urged banks to relax
lending to meet developers' normal financing needs, and allowed
more real estate firms to issue bonds in the domestic market.
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 (Reporting by Samuel Shen and Andrew Galbraith; Editing by
Stephen Coates)
 ((samuel.shen@thomsonreuters.com;  +86 21 20830018; Reuters
Messaging: samuel.shen.thomsonreuters.com@reuters.net))