Central China Real Estate, a Hong Kong-listed Chinese real estate developer, said it will suspend all offshore debt payments, citing weakness in the country’s property market, deteriorating sales and constrained liquidity.
“After careful consideration, the company will suspend payments to all offshore creditors to ensure fair treatment among all offshore creditors,” Central China Real Estate Ltd. said after it wasn’t able to pay the interest on its 7.75% senior notes due 2024 at the end of a grace period on Friday.
Such non-payment may lead to creditors “demanding acceleration of repayment of their debts” or taking other actions, the developer said in an exchange filing, adding that it had concluded that “it should immediately explore a holistic solution to the current situation to secure” the group’s future development.
It noted that, as of Friday, Central China said it had not yet received any notice regarding acceleration of offshore repayment and business operations remained normal.