Another of China’s struggling property developers, Yango Group, has been unable to pay $27.3 million in interest on two US dollar bonds after a 30-day grace period, the company said. The bonds were initially due on January 15, reports Caixin. The two bonds are a $300 million, 9.25% US dollar bond due April 2023 and a $357 million, 7.5% bond due April 2024.
Since the third quarter of 2021, Yango faces not only pressure from regulators to reduce its debt but also a sales decline and liquidity problems. The default could trigger clauses on domestic bonds and other products, the company said. Even though the two US dollar bonds are exempt from cross defaults on other offshore bonds, the default may still trigger cross defaults on domestic bonds, a person close to the company said.
Chinese developers continue to be under pressure following record defaults last year amid a government clampdown on excessive borrowing and declining home sales.