Troubled property developer China Fortune Land Developmentagain defaulted on billions of RMB in debt as it struggled to scrape together enough cash to meet its commitments amid a tightening regulatory environment, reported Caixin.
China Fortune said that it and its subsidiaries have recently failed to repay RMB 8.38 billion ($1.3 billion) in principal and interest on a mishmash of new debt, including bank loans, trust loans, bonds and other debt financing tools, according to a Wednesday filing the Shanghai Stock Exchange.
The latest defaults add to the property developer’s already large pool of debt. As of Wednesday, China Fortune has defaulted on a total of RMB 19.42 billion in principal and interest, and it is negotiating with related financial institutions to possibly postpone repayment, it said in the filing.