China Real Estate Developer Xuhui Holdings Group's recent bond interest has not been paid, and Fitch rating has been lowered, causing market concerns.The company issued an announcement on Thursday (October 13) stating that reports cannot accurately reflect the company's overseas debt situation, and the company is advancing to reach a friendly solution with relevant creditors.
According to Bloomberg, the credit rating agency Fitch will reduce the rating of Xuhui Holdings headquarters in Shanghai from BB-to CC on Wednesday (11th).There is uncertainty.The report also said that later that day, "because Xu Hui chose to stop participating in the rating process," Fitch canceled its rating.
According to the data compiled by Bloomberg, the interest of 9.14 million US dollars (about S $ 13.1 million) bonds expired on the day of the relegation of Fitch.
In addition, in the statement of the lowering rating, Fitch emphasized that there were reports that the unnamed market reported that Xuhui failed to pay a interest payment that should be paid earlier this month and sought to delay delayed delaying.Other specific principal and interest payment.According to data compiled by Bloomberg, the interest of HK $ 88 million (about S $ 16.07 million) in the convertible bond expired on October 8.
Xuhui Holdings Group issued an announcement on Thursday afternoon saying that relevant reports and rumors since September 28 may not accurately reflect the group's overseas debt situation.
Xuhui explained that due to the "Eleventh" holiday of the National Day of China, the company is lagging behind the exit of funds to pay some overseas interest and funds.Solutions for the best interests of shareholders.As of the day of the announcement, the group's business operation remained normal.
However, the announcement also said that if the company cannot fulfill the financial obligations of overseas debt in time and fail to reach an appropriate and friendly solution with the creditors, the default of overseas debt may occur, which may cause creditors to have the right to require requestAccelerate repayment under financing.
Xuhui emphasized that the discussion of the company and related creditors is constructive, and it is promoting a friendly solution.
Xuhui Holdings issued a bond of 1.2 billion yuan (about S $ 240 million) with the support of China Debt Credit Protection Guarantee support on September 21.There was a collapse.According to the statistics of Bloomberg, the company's US dollar bond expired in January next year, the purchase price of nearly 90 cents per month ago, fell to 15 cents.
Bloomberg Industry Research Credit Analyst Andrew Chan said, "The prospect of private developers is unpredictable, and the Xuhui incident shows that the cash recovery is quite weak.More bond holders have positioned positions. "
He pointed out:" The country either involves or gives up the efforts to save the entire industry, because the guarantee of the guarantee of the bond issuance seems not enough to ease the pressure of private developers. "
As of press time, Xuhui Holding Group is HK $ 0.53 per share, a drop of about 8.62%.Since the end of August, Xuhui Holdings's stock price has fallen by nearly 80%.
