Chinese property developer Greenland Holdings Corp is seeking an extension on bond repayments of $370 million due next month by up to two years.
The debt-ridden developer said on Monday it hopes to extend the repayment deadline after “experiencing significant declines in its sales and operations”.
Business has been hurt by the Covid situation and negative market conditions, it explained in an exchange filing.
State-backed Greenland joins a string of Chinese developers that have delayed or defaulted on offshore debt obligations since the second half of last year.
Property Sector Woes
Greenland has been reeling under financial stress since last year as China’s property sector woes deepened.
The developer also faces difficulties in repaying other securities on time, it said, and proposes to extend the maturity of a batch of notes due to mature next June by one year and the remaining seven series of bonds by two years.
In August, it borrowed 3 billion yuan ($411 million) from two state-owned shareholders to help it ensure the delivery of homes, a move seen by some analysts that indicated it still had support from the government.
- Reuters, with additional editing from Alfie Habershon