© Reuters. A man and a child walk by a construction site under property developer CIFI Holdings in Wuhan, Hubei province, China February 4, 2016. Picture taken February 4, 2016. REUTERS/Stringer ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY. CHINA OU
HONG KONG (Reuters) – Shanghai-based property developer CIFI Holdings said in a Thursday filing it did not meet certain offshore scheduled interest and amortisation payments due to delay in remittance during an extended holiday in mainland China.
It has been engaging with relevant creditor groups to reach consensual solutions, it said, but warned that if it does not meet its offshore debt obligations or is unable to implement appropriate solutions, events of default may occur which could lead to other creditors requesting early redemption.
Analysts said the debt is a HK$2.5 billion ($319 million) convertible bond with an interest payment due on Oct. 8. The 6.95% bond was issued in April this year.
CIFI had been considered a better-quality private developer and reports of it coming under a financial crunch have shocked the market, raising worries that others including top player Country Garden could also get into repayment troubles and further deepen the debt crisis in the sector.
Shares of CIFI slid 8.6% as of 0558 GMT, and Country Garden lost 7.8%.
CIFI said in its filing conversations with its creditor groups were constructive and progressing towards consensual solutions. It said its commercial operations remain normal.
($1 = 7.8493 Hong Kong dollars)
Be the first to comment