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Fantasia’s shares sink after developer founded by former Chinese vice-president’s niece defaults on bond payment
- Shenzhen-listed developer missed repayment of US$205.7 million bond that was due on October 4
- The developer has nearly 50 billion yuan of loans and bonds due before June 30, 2022
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Shares of Fantasia Holdings Group plunged by almost 40 per cent to a record low on Wednesday, after the debt-laden Chinese developer defaulted on a US dollar bond, further warning there is no guarantee it could meet other financial obligations.
The Hong Kong-listed developer said in a filing late on Tuesday that it did not repay a US$205.7 million bond that was due on October 4. Apart from its 2021 notes, Fantasia said that there were no other overdue bonds and loans of a material nature.
“Given the liquidity issue faced by the group, there is no guarantee that the group will be able to meet its financial obligations under its other financing documents,” the Shenzhen-listed company said in the filing.
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Fantasia was founded in 1996 by Zeng Jie, the niece of former vice-president Zeng Qinghong.
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Fantasia said that while it has not received notices from bondholders seeking immediate repayment, certain lenders have requested early repayment of loans that have not yet matured. The developer said it was in talks with these lenders on arrangements, including renewing or extending the loans.
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