Shimao Group defaulted on its principal and coupon of its $1bn 4.75% bonds that matured on Sunday as per its filing with the HKEX. The developer noted that it has been in discussions with creditors to reach a resolution. Shimao noted that it did not received any notice of an acceleration of repayment from investors. Lucror Analytics analysts wrote on that they expected Shimao to be pushed towards a debt restructuring. Shimao’s contracted sales for the five months of 2022 are down over 72% highlighting the weak financial state of the company amid the property sector crisis. Shimao has hired Admiralty Harbour Capital as financial adviser and Sidley Austin as legal adviser.
Its dollar bonds are trading at distressed levels of 11 cents on the dollar.