Chinese real estate crisis deepens as another developer misses payment deadline
The dollar bond payment due October 4 was not paid, the Shenzhen-based property developer said in a statement to the Hong Kong stock exchange. Earlier, Fantasia said it had “sufficient working capital and no liquidity issue.”
Separately, property management company Country Garden Services Holdings said a unit of Fantasia failed to repay a $108 million loan that also came due on Monday, warning of probable default.Also on rt.com China Evergrande share trading suspended on Hong Kong exchange
The firm had to halt trading of its shares on September 9 until further notice, and hasn’t resumed since. The group was downgraded by rating agencies over risks stemming from the company’s strained cash flow. Fantasia shares have dropped around 60% year-to-date. Its dollar-denominated bonds slid more than 5 cents to new record lows after the latest news.
According to Fitch estimates, Fantasia has some $2 billion of international bond payments to make between now and the end of next year as well as almost $1 billion of local bond payments.Also on rt.com Evergrande’s EV arm warns of cash crisis as property group misses payment deadline
With a modest market value of $415 million, Fantasia is much smaller compared to the distressed property giant China Evergrande. However, its failure to repay a maturing bond is seen as a distinct sign of a growing crisis in China’s property market.
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