A Chinese property developer, Sunshine 100 China, has defaulted on $179 million of debt and interest payments that come due on Sunday, reports Bloomberg. The company announced that it is unable to repay the $170 million of principal and over $8.9 million interest on its 10.5% notes due this year. The company’s default will also trigger provisions under some other debt instruments.
“Owing to liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment and the real estate industry, the company is not able to repay the principal amount of the notes and the accrued but unpaid interest,” Sunshine 100 said in a filing.
The default highlights the stress for developers amid ongoing fears that the giant China Evergrande Group could default on its liabilities. Rising Chinese junk dollar bond yields has made it difficult for distressed developers to refinance their maturing debt. That helped contribute to a wave of defaults in October.