Chinese property developer CIFI Holdings said that it will suspend offshore debt payments due to its inability to raise overseas funds this year. The company had earlier defaulted on a convertible bond early last month highlighting a deeper weakness even in relatively higher rated developers. CIFI was among a list of 16 developers selected by Beijing to issue local state-backed bonds and considered as resilient. CIFI has now said that it terminated discussions with individual creditors and offshore groups “to ensure fair and equitable treatment” of all creditors.
CIFI’s dollar bonds were trading slightly weaker at deeply distressed levels of ~5 cents on the dollar.
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