China-based Wuzhou International Holdings Ltd.'s board said the company was unable to fulfill its payment obligations and liabilities regarding the second tranche of 2016 corporate bonds and the first tranche of 2017 corporate bonds.
Wuzhou was obligated to redeem part of the second tranche of the 2016 corporate bonds in the principal sum of 395.5 million yuan and pay an aggregate interest of 111.0 million yuan Sept. 19.
For the first tranche of the 2017 corporate bonds, an indirect wholly owned subsidiary of the company was obligated to redeem all the principal sum of 1.00 billion yuan and pay an aggregate interest amounting to 50.6 million yuan Sept. 20.
The board said the company was unable to fulfill the obligations due to financial difficulties and is now exploring various ways to handle the defaults as well as the various legal proceedings and claims related to the corporate bonds.
The real estate developer also recently said it may not make the payment for the US$300.0 million of 13.75% senior notes that were due for redemption Sept. 26.
Trading in the company's shares, which was suspended Sept. 3, will remain so until further notice.
As of Oct. 4, US$1 was equivalent to 6.87 yuan.