China’s 30th-largest property developer, Zhenro Properties, revealed it missed interest payments on two separate offshore bonds, with the expectation of missing at least four further payments in the next few months thanks to the Shanghai lockdown, reports Nikkei Asia. The company did add that it plans to make payments by the end of next month.
“During the past few weeks due to the COVID lockdown situation in Shanghai, some of the company’s operations have been halted and the progress of sales and asset disposals have been delayed,” it said in a filing on Sunday. It was not able to pay $20.4 million in combined interest for its May 2020 and June 2021 notes within the 30-day grace period after they were due on March 10. The two notes together are worth $540 million.
Zhenro also flagged that it might miss interest payments on its September 2020, June 2020 and January 2020 notes that have grace periods ending respectively on April 10, April 14 and May 14. It might also default on the $23.4 million principal of April 2021 notes due April 13, it said. Those four bonds combined are worth more than $860 million.