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.

 

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