Developer China South City Awaits Creditor Vote on Bond Relief

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China South City is partially owned by Shenzhen SEZ Construction & Development Group, a unit of the Shenzhen’s local state asset regulator. Photo: Bloomberg

(Bloomberg) — China South City Holdings Ltd., partially owned by the southern city of Shenzhen, awaits a creditor vote result that would allow the developer to extend bond interest payment deadlines or risk becoming the latest defaulter in the beleaguered industry.

Creditors are huddling for the vote as the grace period for an interest payment on the company’s 9% notes due July 2024 — with $235 million of principal outstanding — ends Wednesday. South City said in a Monday filing that it didn’t have enough resources to pay for it.