Modern Land shares plunge after bondholders demand early repayment

Beijing, China. Photo by zhang kaiyv on Unsplash

Shares of Chinese developer Modern Land plunged nearly 40% to all-time lows on resumption of trade on Monday after it said it has been in talks with noteholders on a restructuring plan for its $1.3 billion of offshore bonds.

Modern Land said in a filing on Monday it has received notices from certain noteholders demanding early repayment of their senior notes, after the firm missed payment for its 12.85% notes due Oct 25, 2021.

The shares, which have been suspended since Oct. 21, sank nearly 40% in Asia opening hours to HK$0.23, a historical low.

The developer said it has been in discussion with these creditors for a waiver and it has appointed financial advisers to formulate an overall plan for feasible remediation actions.

Chinese developers are facing an unprecedented liquidity squeeze due to years of regulatory curbs on borrowing, leading to a string of offshore debt defaults, credit-rating downgrades and sell-offs in developers’ shares and bonds.

China Evergrande Group, the world’s most indebted developer with more than $300 billion in liabilities, is seeking a six-month delay in the redemption and coupon payments of a 4.5 billion yuan ($157 million) bond in a meeting with bond holders. The outcome of the meeting is expected later Monday.

Separately smaller peer Shimao Group Holdings, which defaulted on a trust loan last week, has put on sale all of its real estate projects, including both residential and commercial properties, Caixin reported.

The Shanghai-based property developer has struck a preliminary deal with a Chinese state-owned company to sell its Shimao International Plaza Shanghai, a commercial property on Shanghai’s Nanjing Road, for more than 10 billion yuan, the report said.

The company didn’t immediately respond to a request for comment.

As of 0207 GMT, shares of Evergrande fell 2.8%, while Shimao gained 5.3%.

Reuters

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.