Chinese developer Fantasia’s shares have halved as trade picks up; lack of payment of the deposit
HONG KONG, November 10 (Reuters) – Fantasia Holdings shares 1777.HK plunged 50% after saying there was no guarantee he would be able to meet his other financial obligations following a missed payment of $ 205.7 million in banknotes due Oct. 4 .
The Chinese developer said in a filing Tuesday that it has no other unpaid obligations and loans of a material nature other than the 2021 banknotes.
He added that he had not received any notice from bondholders requesting immediate repayment, but had received notices from some lenders requesting repayment of loans that are not due, and he is in talks with them on the terms of settlement, including renewal or extension of loans.
“Given the liquidity problem that the Group is facing, there can be no guarantee that the Group will be able to meet its financial obligations under its other financing documents,” he said in the file.
Chinese real estate sector rocked by contagion risks from besieged China Evergrande Group 3333.HK, the world’s most indebted developer, who has stumbled from maturity to maturity in recent weeks as it grapples with over $ 300 billion in liabilities.
The developer hired Houlihan Lokey (China) Limited and Sidley Austin as financial and legal advisers.
The action resumes trading on Wednesday, having been suspended since September 29.
Hang Seng Index .HSI decreased by 0.3%.
(Reporting by Clare Jim; Editing by Muralikumar Anantharaman and Stephen Coates)
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