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| Chinese real estate crisis deepens as another developer misses payment deadline | Chinese real estate crisis deepens as another developer misses payment deadline |
| (14 days later) | |
| A Chinese developer of luxury apartments, Fantasia Holdings Group, has failed to repay $205 million to bondholders on the heels of the debt crisis that has hit real estate giant Evergrande. | A Chinese developer of luxury apartments, Fantasia Holdings Group, has failed to repay $205 million to bondholders on the heels of the debt crisis that has hit real estate giant Evergrande. |
| The dollar bond payment due October 4 was not paid, the Shenzhen-based property developer said in a statement to the Hong Kong stock exchange. Earlier, Fantasia said it had “sufficient working capital and no liquidity issue.” | The dollar bond payment due October 4 was not paid, the Shenzhen-based property developer said in a statement to the Hong Kong stock exchange. Earlier, Fantasia said it had “sufficient working capital and no liquidity issue.” |
| Separately, property management company Country Garden Services Holdings said a unit of Fantasia failed to repay a $108 million loan that also came due on Monday, warning of probable default. | Separately, property management company Country Garden Services Holdings said a unit of Fantasia failed to repay a $108 million loan that also came due on Monday, warning of probable default. |
| The firm had to halt trading of its shares on September 9 until further notice, and hasn’t resumed since. The group was downgraded by rating agencies over risks stemming from the company’s strained cash flow. Fantasia shares have dropped around 60% year-to-date. Its dollar-denominated bonds slid more than 5 cents to new record lows after the latest news. | The firm had to halt trading of its shares on September 9 until further notice, and hasn’t resumed since. The group was downgraded by rating agencies over risks stemming from the company’s strained cash flow. Fantasia shares have dropped around 60% year-to-date. Its dollar-denominated bonds slid more than 5 cents to new record lows after the latest news. |
| According to Fitch estimates, Fantasia has some $2 billion of international bond payments to make between now and the end of next year as well as almost $1 billion of local bond payments. | According to Fitch estimates, Fantasia has some $2 billion of international bond payments to make between now and the end of next year as well as almost $1 billion of local bond payments. |
| With a modest market value of $415 million, Fantasia is much smaller compared to the distressed property giant China Evergrande. However, its failure to repay a maturing bond is seen as a distinct sign of a growing crisis in China’s property market. | With a modest market value of $415 million, Fantasia is much smaller compared to the distressed property giant China Evergrande. However, its failure to repay a maturing bond is seen as a distinct sign of a growing crisis in China’s property market. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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