Greenland Holding missed paying the principal on its outstanding $362mn 5.6% bond that was due on November 13. At the end of October, the developer warned that it would likely default on the above bond and launched a consent solicitation, to extend maturities for nine of its dollar bonds, expiring on November 18. As part of the solicitation, it had proposed to extend the bond due November 13 by two years. If the developer gets bondholder consent, the default of the November bond will be waived.
S&P downgraded the developer to SD (selective default) from CC on the missed payment. It does not expect Greenland to repay the notes within five business days as the company is seeking to extend the maturity on all of its dollar bonds. If the maturity extensions go through, it will be considered a distressed transaction and is likely to further downgrade the developer to D.
Greenland’s dollar bonds were trading ~1 point higher at 23-25 cents on the dollar.