Shimao Group’s dollar bonds saw a collapse in its prices after Chinese lender China Credit Trust Co said that the developer defaulted on a trust loan after missing an RMB 645mn ($101mn) payment. China Credit Trust Co said in a letter, confirmed by two sources, that while RMB 755mn ($118.3mn) of a trust loan had been repaid, the absence of the remaining payment meant that the loan was in default. The unit which missed the payment was Shimao’s onshore unit Shanghai Shimao Jianshe. The unit noted that the underlying project of the trust loan was still collecting cashflows from property sales in preparation for the loan repayment. It added that it was in talks with China Credit Trust to resolve the problem.
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