Sun Hongbin’s ‘Sunac’ fails to fulfill its financial obligations and falls into default
Sunac China Holdings said the failure to make the payment may lead the creditors to demand an immediate repayment of their principal amount and accrued interest.
Sunac China Holdings, is a real estate firm directed by the billionaire Sun Hongbin which is now accused for default on interest payments for a $742 million offshore bond. However, it’s also not sure whether Sunac will make the payments on other notes coming due this year, according to a Thursday filing to the Hong Kong Stock Exchange.
Moreover, Sunac is joining the likes of China Evergrande Group, Fantasia, Modern Land, Kaisa Group Holdings amongst others who have struggled to get access to financing after Beijing had cracked down on the real estate sector, which the government concludes as having high levels of debt which further poses a threat to financial stability.
Sunac China Holdings said the failure to make the payment may lead the creditors to demand an immediate repayment of their principal amount and accrued interest. However, until now they have not received any such demands from the bond holders yet.
“Taking into consideration the group’s current liquidity constraints, it’s not assured that the group will be able to meet its financial obligations when due or within the relevant grace periods,” the filing added.
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