China's Modern Land says bond default triggers earlier repayment deadlines, pulls dividend

By Kitco News / November 01, 2021 / www.kitco.com / Article Link

Nov 1 (Reuters) - Chinese developer Modern Land (China) said on Monday a default on a bond repayment last week has pulled forward repayment dates for a further $321 million worth of notes, and the company withdrew an interim dividend to hold on to cash.

The development highlights the impact of China Evergrande here Group, which narrowly averted a costly default, on the rest of the high-yield sector as liquidity dries up and sales slow.

Modern Land said last week it had not repaid principal and interest on its 12.85% senior notes with an outstanding principal of $250 million.

The non-payment triggered conditions under which other financing arrangements, including 9.8% green senior notes due 2023 worth $321 million, may become immediately payable. No bondholders have yet enforced any action, the company said.

However, the company said it has already got notices from an offshore creditor demanding early repayment of $23.6 million, and was in talks for a waiver to avoid the payment and further enforcement.

The developer also withdrew its recommendation for an interim dividend of HK4.81 cents per share declared in August due to "unexpected liquidity issues", and was currently taking stock of other repayment obligations. (Reporting by Arundhati Dutta in Bengaluru; Editing by Sriraj Kalluvila)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Recent News

Monetary-driven precious metals outperform major base metals

September 09, 2024 / www.canadianminingreport.com

Gold stocks hit by plunging equities markets

September 09, 2024 / www.canadianminingreport.com

Gold stocks down as metal and equities momentum fades

September 02, 2024 / www.canadianminingreport.com

Another Kazatomprom guidance announcement shakes uranium price

September 02, 2024 / www.canadianminingreport.com

Major monetary drivers still supporting gold

August 26, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok