Developer Sunac China missed the deadline for coupon payments on a $742 million offshore bond and said on Thursday it does not expect to make payments coming due on other bonds, adding to a wave of defaults in China's debt-laden property sector.
A source close to the company, the nation's third-largest property developer by sales, said Sunac is considering a restructuring of its offshore debt to extend payments. It is also talking to state-owned entities about strategic investments in the firm.
Sunac declined to comment.
With $7.7 billion in dollar bonds, Sunac is the fourth-largest issuer among Chinese developers.
China's property sector has been hit by a series of defaults on offshore debt obligations, highlighted by China Evergrande Group and Kaisa Group, as well as bond exchanges, with Zhongliang Holdings the latest firm to extend payments.
