China Builder Yuzhou to Miss Bond Payments After Debt Exchange

Unfinished apartment buildings at the construction site of the West Bund Park residential project, developed by Sunac China Holdings Ltd., in Shanghai on Jan. 14. Photo: Bloomberg

(Bloomberg) — Chinese developer Yuzhou Group Holdings Co. said it won’t pay off two dollar bonds due this week, meaning some events of default will occur, as builders continue to struggle meeting debt payments.

The company earlier this month offered to swap the notes for new debt, and investors exchanged most of their holdings. There’s $104.9 million of combined principal remaining, Yuzhou said in a Monday stock exchange filing, and it’s opting not to pay that while planning to relaunch the exchange offer this week.