New World’s Distress Worsens After Delay on Bond Interest

Hong Kong developer New World Development Co. is sliding deeper into distress after jolting investors by delaying interest payments on some bonds, marking the latest flashpoint in a years-long crisis in China’s property market.

New World, which is grappling with HK$220 billion ($28 billion) of liabilities, said in a filing late Friday that it’s planning the deferment for coupons on four perpetual notes. In total, that means it’s postponing $77.2 million of debt obligations, according to Bloomberg calculations.