A unit of Chinese developer Logan Group is delaying payment that’s part of an onshore bond’s extension plan, the latest sign that liquidity continues to deteriorate in the sector, reports Bloomberg.
Shenzhen Logan Holdings said in an exchange filing it would delay RMB 140 million ($19.4 million) of principal and interest due Wednesday as part of a monthly installment plan approved in March. The firm intends to accelerate fund-raising during a 30-day grace period to make the payment.
Cash-starved developers have led a record amount of missed payments on dollar notes this year, while defaults on onshore bonds have fallen sharply as many builders resort to debt extensions. Logan Group, China’s 31st-largest developer by contracted sales, highlights the difficulty for some to meet pushed-out obligations on local debt. Last month, Jinke Properties Group delayed partial repayment of an extended yuan bond.