HONG KONG, April 11 (Reuters) – China’s Zhenro Properties (6158.HK) said it had not paid interest on two offshore bonds and expects four more defaults in the coming months due to the Shanghai lockdown, but added that it expects to make the payments by the end of May.
Shares of the country’s 30th-largest developer fell 10% on Monday morning, while the price of its bonds also fell.
“Over the past few weeks, due to the COVID lockdown situation in Shanghai, some of the company’s operations have been halted and progress in sales and asset disposals has been delayed,” he said. Sunday in a folder.
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It was unable to pay $20.4 million in combined interest for its May 2020 and June 2021 notes within the 30-day grace period after they matured on March 10.
Both tickets are worth $540 million.
Zhenro also reported that he may miss interest payments on his September 2020, June 2020 and January 2020 notes whose grace periods end on April 10, April 14 and May 14, respectively. It could also default on the principal of $23.4 million of the April 2021 notes due. April 13, he said.
These four bonds combined are worth more than $860 million.
The January 2020 bond due April 2024 was trading at 13.006 cents to the dollar versus 15.443 cents on Friday.
Zhenro plans to extend the maturity of its onshore and offshore debt and dispose of assets worth up to 4 billion yuan ($630 million) in the first half, sources told Reuters in February. Read more
($1 = 6.3717 Chinese Yuan)
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Reporting by Clare Jim; Editing by Edwina Gibbs
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