Shimao Bonds Sink to New Low as Firm Fails to Calm Investors
- Shimao unit says business as usual, has ability to repay debt
- Company’s stock, bonds are tumbling on liquidity concerns
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Shimao Group Holdings Ltd. bonds tumbled to new record lows after the developer’s attempts to revive confidence in its finances failed to reassure investors.
Shimao Group’s bond due next year plunged by more than 7 cents on the dollar despite reassurances from its Shanghai Shimao Co. unit late Tuesday that its business activities are normal and there’s no event that would affect its ability to repay its bond principal and interest. The parent company also defended a recent transaction between two units that had prompted the Shanghai stock exchange to ask whether the deal would hurt smaller shareholders.