Chinese developer Sunac fails to repay bonds, expects to miss more

© Reuters. FILE PHOTO: An advertisement for property developer Sunac China Holdings is seen in a residential area in Shanghai, China, March 25, 2018. REUTERS/Stringer

HONG KONG (Reuters) – Sunac China has not paid interest on $742 million of offshore bonds by the time the grace period expires and does not expect to pay interest on other maturing bonds, Sunac China said in a statement on Thursday. .

It should have paid $29.5 million in interest on the October 2023 bond, which needed to be paid back last month.

Sunac said it also paid no interest on three other offshore bonds that are also currently in a 30-day grace period.

Sunac said the outstanding amount on the October 2023 bond is now $742 million.

“The group’s contracted sales continued to decline significantly, while it became increasingly difficult to secure new financing as some property developers experienced more liquidity problems,” it said in a statement to the Hong Kong stock exchange.

“The company does not expect to make payments on the aforementioned and other senior notes upon maturity or during the relevant grace period,” it said.

The company said in a statement that it has retained Houlihan Lokey (NYSE: ) as financial advisor and Sidley Austin as legal advisor.

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