Shimao says Cinda trust winding-up petition triggers default on $9.07bn debt
Shimao Group said a winding-up petition from China Cinda Trust has not been withdrawn for 60 days, triggering defaults on affected debt instruments. Outstanding principal totals about $9.07 billion. The company warned of a material adverse financial impact but has not received immediate repayment de
Shimao Group has announced that a winding-up petition filed by China Cunda Trust has triggered defaults on affected debt instruments after it was neither withdrawn nor suspended for 60 consecutive days from the date of service. The deadline expired on 25 October.
The company said that the outstanding principal balance, premiums, and accrued and unpaid interest on the affected debt instruments all became immediately due and payable automatically upon expiry of the deadline. As of 26 October, the total outstanding principal on the affected debt instruments stood at approximately US$9.07 billion.
Shimao said it expects the defaults and the resulting acceleration of the affected debt instruments could have a material adverse impact on its financial condition. However, it added that it has not received any immediate repayment notices or demands in respect of the affected debt instruments.
Earlier on 26 October, Shimao’s share price was quoted at HK$0.049, a drop of 12.5 per cent.