The country’s 88th-largest builder by contracted sales said in a Hong Kong stock exchange filing it likely wouldn’t pay the 2025 note’s coupon initially due last month before the end of a grace period, potentially resulting in demands for immediate redemption of the note and acceleration of other debt.新加坡博彩公司总行地址（www.99cx.vip）是一个开放皇冠体育网址代理APP下载、皇冠体育网址会员APP下载、皇冠体育网址线路APP下载、皇冠体育网址登录APP下载的官方平台。新加坡博彩公司总行地址上最新新加坡博彩公司总行地址会员登录线路、新加坡博彩公司总行地址代理网址更新最快。新加坡博彩公司总行地址开放皇冠官方会员注册、皇冠官方代理开户等业务。
HONG KONG: Redsun Properties Group Ltd is poised to become China’s latest developer to be delinquent on borrowings, warning it likely won’t pay a bond coupon before a looming deadline and may be unable to meet other debt obligations.
The country’s 88th-largest builder by contracted sales said in a Hong Kong stock exchange filing it likely wouldn’t pay the 2025 note’s coupon initially due last month before the end of a grace period, potentially resulting in demands for immediate redemption of the note and acceleration of other debt.
Redsun also can’t guarantee it will be able to meet obligations on other offshore notes and bank loans as they come due.
The company has paid US$1.5bil (RM6.67bil) of principal and interest this year, including US$616mil (RM2.74bil) in offshore debt, according to the filing.
Still, “it remains under significant pressure,” said Redsun.
It’s hired Haitong International Securities Co as its financial adviser and Linklaters LLP as its legal adviser.,
Investors have had their doubts about timely payments from Redsun.
The stock has plunged nearly 60% this quarter.
Fitch Ratings downgraded Redsun and parent Hong Yang Group Co to C and then withdrew all grades, saying the firms have chosen to stop participating in the ratings process.
“A default-like process has begun” in the wake of Redsun’s interest-payment warning, said Fitch.
Chinese borrowers have defaulted on a record US$28.8bil (RM128bil) of offshore bonds this year, according to data compiled by Bloomberg, primarily dollar notes from property firms amid slumping home sales and limited financing channels.
The number is likely to rise further this year, according to Goldman Sachs analysts. — Bloomberg