Modern Land China filed for Chapter 15 bankruptcy in New York on Friday, a move that allows the company to protect its US assets while implementing a restructuring elsewhere. This comes after the developer failed to repay a $250mn bond due in October 2021 and said it would go forward with an offshore debt restructuring deal in March 2022. Its bankruptcy petition is said to have referenced pending restructuring proceedings in the Cayman Islands. The judge’s approval is yet to be given for the above. Recently in February, a unit of another peer RiseSun Properties filed a Chapter 15 petition in the US in February as part of a debt-revamp, for the US court “to recognize the BVI Scheme arrangements for its offshore debt exchange”. Modern Land has defaulted on $450mn of its dollar bonds and has a total of $1.35bn in dollar bond maturities.
Its dollar bonds are trading at distressed levels of 19 cents on the dollar.
