- Fantasia Holdings, a Chinese property designer, stopped working to pay $206 million in loans on Monday.
- Simply 2 weeks ago, Fantasia’s chairman stated the business had no liquidity issues.
- The default suggests that realty giant Evergrande is not alone in battling a mountain of debt.
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Chinese home designer Fantasia Holdings stopped working to pay back a $206 million bond payment due Monday, stated the business, just two weeks after it stated it had no liquidity issues.The missed out on payment contributes to the currently enormous stress on China’s property sector, which has been left exposed to the$305 billion credit crunch from home giant Evergrande, the most indebted business in the world.Fantasia is worth$415 million, reported Reuters,
a drop in the ocean compared to Evergrande’s crisis. However its bond default adds to fears that an impending major collapse in China’s home market could destabilize the whole Chinese economy.Fantasia, based in Shenzhen, is associated with developing around 127 million square feet of land, and
handles an overall 47 jobs– mainly for mixed domestic and industrial usage– since June, according to its 2021 interim report. It took a senior note bond worth$ 500 million in 2016 that was due this year, stated the company in a Monday exchange filing.
However when the due date got here, it still had $206 countless the payment left outstanding, it stated. “The Board and the management of the Business will assess the potential effect on the monetary condition and money position of the Group under the circumstances,”read the statement.On the other hand, Fantasia Chairman Pan Jun said two weeks ago that its”operating efficiency is excellent with sufficient working capital and no liquidity concern.
“On the other hand, among Fantasia’s subsidiaries failed to pay back a separate $108 million loan that was also due on Monday, stated Nation Garden Holdings, China’s greatest property designer, per Bloomberg. Fitch Scores likewise reported that Fantasia had taken$150 million in bonds, but the developer didn’t appear to disclose this in its financial statements. The credit ranking company reduced its
appraisal of Fantasia from”B”to “CCC,”meaning that the property company has considerable credit threat and may default.