Chinese Real Estate Company Zijiaoye Ultimately Defaults

Default Declared After $400 Million Bondholders Refuse 7-Day Maturity Extension
All Dollar Bonds Total $11.78 Billion

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese real estate company Zajiaoye (Kaisha) has finally declared default.

[Image source=Reuters Yonhap News]

According to Chinese economic media Caixin on the 21st, Zajiaoye announced last night that a bond maturity of 400 million dollars (4.767 billion KRW) due on the 7th was not repaid, including the principal and interest of 12.93 million dollars (154 million KRW).

Zajiaoye also reported that it failed to pay interest on two dollar bonds scheduled for the 11th and 12th of last month, amounting to 29.88 million dollars and 58.5 million dollars, respectively.

The company explained that the total amount of dollar bonds was 11.78 billion dollars (14 trillion KRW) as of the 20th. The company added that there have been no early repayment demands from other dollar bondholders so far.

Zajiaoye stated that it is negotiating with representatives of bondholders whose bonds have defaulted to prepare a comprehensive debt restructuring plan. Zajiaoye is the 25th largest real estate developer in China, but its dollar bond scale is the second largest after Hengda.

Earlier, Hengda also officially entered default status following a downgrade by international credit rating agency Fitch on the 9th.

Prior to this, some real estate companies such as Huayangnian, Xinli, and Dangdaizuye had declared defaults.

This content was produced with the assistance of AI translation services.