Another of China’s struggling property developers, Zhenro Properties Group, has reported that it is likely to be unable to meet debt payment obligations next month, reports Bloomberg. According to a filing to the Hong Kong stock exchange, the Shanghai-based developer is soliciting the consent of creditors “to certain proposed waiver and amendments” to help improve its overall finances and give it stability. Zhenro is China’s 30th largest builder by contracted sales in 2021, according to China Real Estate Information Corp.
The company said internal funds available for debt services “became increasingly limited” and said they may be inadequate to “address its upcoming debt maturities in March 2022, including the redemption of the securities in full” on March 5. It had pledged to redeem them earlier.
Chinese developers have faced months of worries about their debt-repayment abilities, as new-home sales plunge and many builders are unable to refinance borrowings. The sector saw a record number of defaults last year following a regulatory crackdown on excessive borrowing in the industry. China Evergrande Group, the world’s most indebted developer, is facing a lengthy restructuring after being labeled a defaulter in December.