No end in sight to Modern Land’s woes while shares sink to record low as trading resumes after 81-day suspension

Stock plummets 40 per cent to HK$0.23, from its previous close of HK$0.45 on October 21

Modern Land also said that it has received notices from some bondholders seeking early repayment of their debt

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Chinese property firms have been hit by debt problems and falling home sales. Photo: Bloomberg

Published: 1:33pm, 10 Jan 2022Updated: 5:51pm, 10 Jan 2022

Shares of Chinese developer Modern Land (China) fell to an all-time low in Hong Kong following the resumption of trading after an 81-day suspension.

The Beijing-based property firm, which defaulted on a US dollar bond in October, said in an exchange filing on Monday that it was in talks with bondholders on a restructuring plan after receiving notices from some investors demanding early repayment of their senior notes.

The shares sank 40 per cent to HK$0.23 on Monday, from its previous close of HK$0.45 on October 21, when it failed to repay the principal and interest upon maturity.

Modern Land said that it has appointed financial advisers to assist with its assessment of the company’s liquidity situation and “formulate an overall plan for feasible remediation actions taking into account the interests of onshore and offshore stakeholders”.

The embattled homebuilder has US$1.348 billion of outstanding dollar bonds, including US$200 million due on February 26 and US$300 million in November. Trading in the company’s debt securities, however, remain suspended until further notice.

Modern Land is among several Chinese developers struggling to stay afloat, coming under scrutiny from Beijing over its piling debt as well as a plunging property market. Over the past year, it has tried to offload assets to raise money and repay creditors, but has not been able to do much.