(Reuters) – Chinese developer Redsun Properties said on Friday it will not be able to pay its $350 million bond due Jan. 13, which includes principal and accrued interest.
The bond was issued in January 2021 with a coupon rate of 7.3%.
The prolonged downturn in China’s real estate market over the past three years has affected the ability of entrepreneurs to repay debt. According to the government’s estimate, the total liabilities of Chinese entrepreneurs will be approximately $12 trillion in 2023.
Sunac China received the liquidation application on Thursday, days after it informed some of its offshore creditors that it was unlikely to meet its September maturity date, while larger rival Country garden (HK:) announced a debt restructuring proposal.
