Chinese property troubles persist and have now affected Singaporean lender OCBC which has filed a legal claim against developer Shimao regarding repayment for a revolving credit facility.
OCBC sued Shimao Group Holdings and a unit with regards to repayment for a revolving credit facility, according to a «Bloomberg» report citing a Hong Kong court filing last week by the Singaporean lender.
According to the filing, the principal of $49.2 million had yet to be repaid by March 2 after OCBC demanded payment of $100 million plus interest in January. It is seeking repayment of the principal amount in addition to interest.
Chinese Property Debt
China continues to grapple with debt worries in the property sector, headlined by Evergrande which will meet yuan bondholders next week to vote on a proposed interest rate payment extension.
Shimao – China’s 13th largest developer – is also facing financial troubles and last month, it said it would delay reporting of its annual results to April 30 due to Covid-linked troubles.
