Posted 12/18/2023, 3:40:00 AM
Chinese Developer China South City Warns It Cannot Pay $235 Million Bond Interest Due This Week
- Chinese developer China South City warns it can't pay $235M interest payment due Wednesday on 2024 bonds
- Company says it doesn't have enough cash flow due to deteriorating business environment
- China South City sought to extend maturity and lower interest rates on $1.35B of bonds, but only got 69.8% creditor approval, short of 75% needed
- Developer's inability to pay will test Chinese authorities' recent vows to prevent widespread defaults
- China South City partially owned by Shenzhen state firm, which bought 29% stake in May 2022 to bail out developer