Sinic Yet to Provide Details on Repayment Arrangements for $250M 9.5% Notes Due Oct. 18; Co.’s Shares Plunge by 87% Today, Sept. 20, to HKD 0.5 per Share; Investors Consider to Take Legal Action Against Co. in Event of Nonpayment

Despite previously assuring investors on an earnings call that the company will be able to generate adequate cash flow from property sales to repay maturing bonds, Chinese real estate company Sinic Holdings has yet to inform investors how it plans to secure funds for its $250 million offshore notes due Oct. 18, and nor has it provided any update on potential asset disposals or refinancing plans, according to two sources familiar with the matter. Instead, Sinic merely reiterated that it is exploring multiple options to deal with the October maturity, the sources added.

The company’s $250 million notes due Oct. 18 were indicated around 31/32 today, Sept. 20, after plunging by 20 to 30 points to around 50 last Friday, Sept. 17, amid increasing concern over its ability to repay the notes using onshore cash from contracted sales as planned.

The company’s shares slumped by 87% today to HKD 0.5 per share, which was later suspended from trading this afternoon.

Bondholders are considering taking legal action against the company in the event of nonpayment, though they plan to continue pressuring Sinic to repay the notes, the sources said.

The holders also have requested the company to hold a conference call with investors as soon as possible to keep them updated, according to the sources.

Fitch Ratings earlier revised its outlook on Sinic to negative from stable, while affirming its B+ rating, citing weakened access to the debt capital market and the rising execution risk of its high-churn business strategy as reasons.

Below is Sinic’s capital structure: