Sino-Ocean Capital (of which Sino-Ocean Group owns a 49% stake) extended the payment on its 6% dollar bond due October 25 by replacing it with a similar coupon note due next year. The new bond has an outstanding principal of $282.3mn. Amid the Chinese property market turmoil and tight liquidity conditions, Sino-Ocean Capital last month obtained bondholder approval to delay an early repayment of an onshore note. Besides, in August it had also failed to repay a $20mn loan before maturity, indicating its stressed situation. Sino-Ocean’s dollar bonds are trading at ~15 cents on the dollar.
Ronshine China said that it did not make the payment on its $700mn 8.75% dollar bond due 25 October 2022. The principal amount plus the accrued and unpaid interest due totaled $718.1mn. The developer said that it will actively engage with its creditors to be able to pay its dues. This is Ronshine’s third offshore bond default after having defaulted in July on two other offshore bonds. Ronshine’s dollar bonds are at deeply distressed levels ~4 cents on the dollar.