Shimao defaults on trust loan, R&F bonds sink
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[HONG KONG] China Credit Trust said a unit of developer Shimao Group Holdings has defaulted on a trust product with 645 million yuan (S$137.6 million) of overdue payment, according to a notice sent to investors seen by Bloomberg. China Credit Trust demanded early repayment on the product after the developer failed to meet instalment requirements, according to the notice. Shimao dollar bonds fell at least 10 cents on the dollar, according to data compiled by Bloomberg.
Separately, Guangzhou R&F Properties' bonds slumped after the developer warned it is struggling to find sufficient funds to partially repay a note maturing next week. R&F said cash earmarked for a partial repayment offer may be materially less than the expected US$300 million because of delays to some planned asset sales.
"The group is continuing to take active measures to shore up its liquidity position," it said in an exchange filing.
China Credit Trust and Shimao did not immediately respond to Bloomberg requests for comment.
BLOOMBERG
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