At sunset, buildings stand in the Qianhai district of Shenzhen's city center. He Shaoping/VCG via Getty Images
Fantasia Holdings was a Chinese property developer that failed to pay $206 Million in loans Monday.
Fantasia's chairman stated that the company was in good financial health just two weeks ago.
This default shows that Evergrande, a real estate company, is not the only one struggling with a mountain of credit.
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Fantasia Holdings, a Chinese property developer, failed to pay a $206 Million bond payment due Monday. This was just two weeks after the company said that it had no liquidity problems.
This missed payment increases the already enormous strain on China's real-estate sector. It has been exposed to Evergrande's $305 billion credit crunch, which is the largest indebted company in China.
According to Reuters, Fantasia's value is $415 million. This is a small drop in the ocean compared with Evergrande. However, fears of a major collapse in China’s property market contribute to the bond default.
Fantasia is based in Shenzhen and has been involved in the development of approximately 127 million square footage of land. It also manages 47 projects, most of which are for mixed residential/commercial use, as per its interim report 2021.
The company stated in an exchange filing that it took a senior bond of $500 million in 2016, which was due in 2016. It said that $206 million was still owing after the deadline.
The statement reads, "The Board and management of the Company will evaluate the potential impact on financial condition and cash situation of the Group under these circumstances."
Pan Jun, Fantasia Chairman, stated two weeks ago that the company's "operating performance was good with sufficient working capital.
According to Bloomberg, a subsidiary of Fantasia failed to pay a $108 million loan, which was due Monday.
Fitch Ratings reported that Fantasia had borrowed $150 million in bonds. However, the developer did not appear to have disclosed this information in its financial statements. Fitch Ratings downgraded Fantasia's credit rating from "B" in order to indicate that Fantasia is at high credit risk and could default.
Business Insider has the original article.
