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Chinese Developer Sinic Warns Of January $250m Bond Default


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Chinese property developer said it’s likely to default on notes worth $250 million that are due next month, which could trigger payments becoming due on all its public bonds


A worker walks on a steel structure at a construction site in Beijing on May 8, 2021. Photo: Greg Baker, AFP.

 

Chinese property developer Sinic Holdings (Group) said on Wednesday it is likely to default on notes worth $250 million due next month, which could trigger the terms where its payments become due for all its public bonds.

The potential default would be Sinic’s second after having missed a payment on a different loan in October.

A slowdown in sales and a liquidity crunch in China have pushed several indebted firms in the high-yielding sector like Kaisa Group Holdings and China Evergrande Group to the brink, roiling financial markets in recent months.

Sinic said it did not have sufficient funds to pay the principal and last instalment of the senior unsecured note due on its maturity date — January 24, 2022.

That, along with cross defaults triggered under the June 2022 bonds, could lead to all of the company’s listed bonds becoming due if holders choose to ask for payments, Sinic added.

Sinic shares and debt securities will continue to be suspended after they were first put on a trading halt on September 20, it further said.

 

• Reuters with additional editing by Jim Pollard

 

ALSO SEE:

Chinese Developer Sinic Downgraded By S&P For ‘Unclear Repayment Plan’

China Evergrande Default Triggers Brawl Over Local Assets

 

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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