China Fortune Land Development Co. Ltd. and its subsidiaries have defaulted on billions of yuan in debt as the property developer has struggled to scrape together cash amid a tightening regulatory environment.
The Shanghai-listed company said it has failed to pay 5.3 billion yuan ($813.5 million) in principal and interest on debts that include bank and trust loans, though not bonds, according to a company filing (link in Chinese) released late Monday.
China Fortune said it couldn’t come up with the cash to make the debt payments due to the current economic and industry conditions coupled with the impact of the Covid-19 epidemic. It added it was trying its best to raise money, and had reached a consensus with some financial institutions about a repayment delay.
h/t OCCAM’S RAZOR