Chinese real estate developer Yango Group failed to pay accrued interest on two dollar-denominated bonds, months after it obtained a deferral of debt payments from investors.
The case is the latest blow to the sector and the offshore securities market in the country.
The Fujian-based real estate group said a 30-day grace period to pay interest on the bonds, which were issued by its Yango Justice International unit, ended earlier this week.
Interest due totaled US$ 27.3 million.
Due to factors “including the macroeconomic environment, real estate and financial sector regulations and the Covid-19 pandemic, the merged company is experiencing a temporary cash flow problem,” Yango Group said in a statement yesterday.
The speed with which the company ran into trouble again shows that bond trading — a popular tool for corporates looking to avoid default and broader debt restructuring — will not necessarily be enough to support companies amid a brutal liquidity crisis. in the industry.
Some of the biggest players in the industry and big international borrowers, such as China Evergrande Group and Kaisa Group Holdings, have already been declared in default by international agencies, with debts that collectively reach tens of billions of dollars. Source: Dow Jones Newswires.
Source: CNN Brasil
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