HomeBusinessChinese developer Shimao slips on loan payment delay plans, asset freeze reports

Chinese developer Shimao slips on loan payment delay plans, asset freeze reports

HONG KONG : Shares of cash-strapped Chinese property developer Shimao Group eased on Thursday, after it sought to increase funds of a $947 million belief loan and reports stated {that a} court docket had frozen sale of 178 flats financed by the loan.

Shimao proposed to collectors on Wednesday it could repay the onshore belief loan in states within the subsequent three years, of which 1.3 billion yuan ($205.36 million) would change into due on Thursday, sources advised Reuters.

The belief loan was used to finance a big mixed-used growth in Shenzhen. Financial information web site Cailianshe reported 178 unsold flats within the growth have been frozen by judicial authorities.

Hong Kong-listed shares of the corporate eased 1.4per cent by midday, narrowing from a 3per cent drop earlier. This in comparison with a 1.1per cent loss within the Hang Seng Mainland Properties Index.

Shimao’s plan to increase loan funds is but to be authorised by collectors, and a few collectors stated they weren’t proud of the proposal that didn’t provide any credit score enhancement.

The Shanghai-based developer, which defaulted on a belief loan final month, has been scrambling to increase debt with collectors and get rid of belongings to boost funds.

The agency additionally stated within the Wednesday assembly that it was in talks, facilitated by the Shenzhen authorities, with state-owned enterprises to introduce strategic traders within the growth.

($1 = 6.3303 Chinese yuan renminbi)

(Reporting by Clare Jim in Hong Kong and Jason Xue in Shanghai; Editing by Rashmi Aich)

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