China’s E-House defaulted on its $298.2mn 7.625% bonds due April 18, 2022, as was expected based on its warning on Monday. This has triggered a cross default wherein holders of its 2023s will now be able to request to accelerate payment. The developer suspended trading of its 2023s as of April 19 and also halted all offshore debt payments. CICC Hong Kong Securities is the company’s financial adviser. Skadden, Arps, Slate, Meagher and Flom is the legal adviser. On Monday, the company said that it may have insufficient funds to repay the bonds as per an exchange filing. The bond does not have a grace period. E-House will now implement a restructuring exercise under the Cayman scheme.

E-House’s USD 7.6% 2023s are trading at distressed levels of 29 cents on the dollar.

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