China Fortune Land Development (CFLD) saw its dollar bonds recover a bit after denying a report that said that the company will suspend all debt payments including bonds, loans and non-standard debt products. The company said in a statement that it is actively raising funds to repay debt. CFLD said that the company and its units have incurred CNY 5.26bn ($813mn) of overdue principal and interest that involved bank/trust loans. Yang Hao, a fixed income analyst at Nanjing Securities Co. said, “The statement lacks concrete details such as measures to address debt risks and the wording isn’t tough enough, meaning selling pressure on the bonds is unlikely to be reduced”.
CFLD’s dollar bonds have gravitated towards distressed levels with Moody’s and Fitch downgrading the company a combined four times in just over a fortnight. CFLD’s 8.625% 2021s maturing this month are currently at 38.57, up 1.05 points.