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Chinese Developer Shimao Defaults on $1 Billion Dollar Bond

  • Property firms have led record wave of offshore defaults
  • Shimao says it’s in talks with creditors, hires advisers
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WATCH: Chinese developer Shimao said it couldn’t pay a $1 billion dollar note that matured Sunday. Annabelle Droulers reports.Source: Bloomberg
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Chinese developer Shimao Group Holdings Ltd. missed payment on a $1 billion dollar note due Sunday, its first default on a public bond after months of mounting stress. 

Shimao’s delinquency is among the biggest dollar payment failures so far this year in China and the firm has about $5.5 billion in outstanding offshore bonds. The luxury builder’s bonds have priced in deep levels of distress since the beginning of the year, with most notes falling to record lows of below 15 cents on the dollar after the firm missed repayment on a private note.