Nan Hai says creditors are freezing its assets as it comes up short to meet US$350 million of notes due this weekend

The company said it “has not been able to meet part of the financial obligations” for its US$350 million, 2.9 per cent credit-enhanced notes due on June 11

That has led to “certain creditors initiating enforcement actions,” according to a statement to the Hong Kong stock exchange

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Image of Nan Hai Corporation. Photo: Handout

Published: 1:30pm, 7 Jun 2022

Nan Hai Corporation said creditors are freezing some of its assets because of the developer’s failure to meet the financial obligations on a dollar-denominated note due this weekend.

The company, owned by the HK01 news portal’s founder Yu Pun-hoi, said it “has not been able to meet part of the financial obligations” for its US$350 million, 2.9 per cent credit-enhanced notes due on June 11, which led to “certain creditors initiating enforcement actions,” according to a statement to the Hong Kong stock exchange.

“This has led to part of [Nan Hai’s] assets being subject to legal process to freeze” the assets used as collateral, said Nan Hai’s executive director Liu Rong, in the exchange filing.

The action underscores how the finances of Nan Hai have fallen victim to the Covid-19 pandemic and China’s property crackdown. Unaudited revenue from Nan Hai’s cinemas plunged more than 70 per cent in 2020 and 2021, while real estate sales fell 35 per cent in 2020, widening to a 50 per cent slump last year, said the Beijing-headquartered company.