Modern Land has become the latest Chinese developer to miss a payment on a dollar bond in a sign of continuing turmoil in the country’s property sector despite Evergrande, its most indebted group, narrowly avoiding a potential default last week.
Modern Land said that principal and interest payments on a bond worth $250m were “not met” by a Monday deadline. Earlier this month the company had asked for a three-month extension to the maturity on the bond, a proposal it later withdrew, saying its liquidity issues had not been resolved.
The company blamed the missed payment on “unexpected liquidity issues arising from the adverse impact of a number of factors including the macroeconomic environment, the real estate industry environment and the Covid-19 pandemic”.