Chinese Builder Logan Delays Payment on Already-Extended Bond

Logan Group, China’s 31st-largest developer by contracted sales, highlights the difficulty for some to meet even pushed-out obligations on local debt

(Bloomberg) — A unit of Chinese developer Logan Group Co. is delaying payment that’s part of an onshore bond’s extension plan, the latest sign that liquidity continues to deteriorate in the sector.

Shenzhen Logan Holdings Co. said in an exchange filing it would delay 140 million yuan ($19.4 million) of principal and interest due Wednesday as part of a monthly installment plan approved in March. The company intends to accelerate fundraising during a 30-day grace period to make the payment.