Chinese developer R&F Properties defaults on US$147 million bond interest payments
- Guangzhou-based developer said it is in discussions with the holders of the notes for an ‘amicable solution’
Chinese developer R&F Properties missed interest payments on three offshore notes in another sign of escalating troubles for the country’s home builders amid a gruelling property market downturn.
The developer failed to pay interest on three dollar-denominated notes issued by its subsidiary Easy Tactic, which was due on July 11, it said in a filing to the Hong Kong stock exchange on Sunday. The three bonds have US$4.53 billion in total face amount outstanding.
The US$147.1 million semi-annual interests on the bonds were due on July 11 and the developer has not paid bondholders even after a 30-day grace period. This non-payment may prompt the note holders to demand accelerated repayment, according to the filing.
The company, based in Guangzhou in southern Guangdong province, is talking bondholders for a solution and will consider all possible actions regarding its offshore debts. The firm has engaged Alvarez & Marsal as its financial adviser and Sidley Austin as its legal adviser for the process.
R&F shares fell 2.5 per cent to HK$0.77 on Monday.
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