Modern Land did not make the $250 million bond payment due Monday.
Chinese developer who works on green projects cited unexpected liquidity problems arising from a variety of factors.
Evergrande, Evergrande's embattled rival, unexpectedly paid $83.5 million to bondholders offshore.
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Modern Land, a Chinese developer, was the latest to default on a bond payment. This indicates that China's property market is still in turmoil.
A Beijing-based developer that is listed in Hong Kong stated Tuesday that it failed to repay a bond of $250 million that matured October 25th.
Modern Land attributed the late payment to an unanticipated cash crunch that resulted from a variety of factors, including the macroeconomic environment and the real estate sector environment.
The company had earlier asked bondholders in October to extend Monday’s deadline by three months. However, the proposal was canceled last week.
Modern Land, which constructs energy-saving homes said it is in contact with Sidley Austin, its legal counsel, and plans to soon engage independent financial advisors to develop a plan for both onshore and offshore stakeholders.
Modern Land tried borrowing, divestitures and strategic investors before missing the payment, Bloomberg reported. OANDA and Lucror Analytics, two research firms, called the event a default. However, the company did not specify whether it was an event of default.
Asian equities were affected by ongoing concerns about China's property sector on Tuesday. The Shanghai Composite fell 0.3%, while the Hang Seng in Hong Kong dropped 0.4%.
The Hang Seng Mainland Property Index fell by as much as 5% while the Hang Seng Property Index fell 1.9%.
Modern Land shares have fallen 55% this year, having been stopped from trading since Oct 21.
Multiple developers defaulted this month. Evergrande, however, made an offshore bond payment of $83.5 million before the deadline.
Evergrande, the Chinese property tycoon, is due to make another grace period payment on October 29. Analysts say investors will closely monitor whether that payment is made. In the next weeks, it will face a series of multi-million-dollar payment deadlines.
Fantasia, Sinic, and other small-scale Chinese developers have also defaulted. Bloomberg reports that Chinese borrowers have defaulted on offshore bonds totaling at least $8.7 trillion so far this year.
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