Chinese Builder Powerlong Defaults on Dollar-Bond Payment
- Shanghai-based firm said it failed to pay $15.9 million coupon
- Value of new home sales at developers slid 27.5% in October
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Chinese builder Powerlong Real Estate Holdings Ltd. has defaulted on one of its dollar bonds as it struggles with sluggish sales and worsening liquidity.
The Shanghai-based company said it hadn’t made a $15.9 million interest payment on its 5.95% notes due April 2025 as its liquidity position continues to deteriorate, according to a stock exchange filing late Wednesday. The non-payment will result in an event of default under terms of certain offshore bank and other borrowings, based on the statement.