Chinese property developer Shimao misses repayment of billion-dollar bond

HONG KONG, July 3 (Reuters) – Chinese developer Shimao Group (0813.HK) has missed interest and principal payments on a $1 billion offshore bond due on Sunday in the latest blow to China’s property market in trouble.

Shimao was unable to pay a total of $1.023 billion in principal and interest to creditors of a senior note listed on the Singapore Stock Exchange, the developer said in a filing Sunday with the Singapore Stock Exchange. Hong Kong, citing “market uncertainties regarding debt refinancing” and “difficult operating and financing conditions”.

With a coupon rate of 4.750%, the bond matured on July 3 this year.

The developer has not received notice of accelerated repayment from its lenders, he said, suggesting creditors have not taken enforcement action.

Shimao hired Admiralty Harbor Capital as financial advisor and Sidley Austin as legal counsel to help assess and explore ways to manage the liquidity crisis.

Meanwhile, the creditors of its two syndicated loans have agreed to give the cash-strapped Chinese developer a break.

Shimao said it received written notice of majority lender support for two syndicated loans agreed in 2018 and 2019, in which HSBC acted as the main facilitator for the dual-currency loans.

The creditors, who “generally maintain that the company continues to explore the possibility of an agreement and the implementation of a possible restructuring with its affected stakeholders”, are willing to allow Shimao to continue to manage the business with minimal disruption, according to the filing. .

Reporting by Selena Li, editing by Louise Heavens

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