On the evening of February 26, HHH released a debt default announcement showing that the company has failed to repay the principal and interest on its debts as scheduled by a total of more than 11 billion yuan so far.
Comprehensive media news, on February 26, Huaxia Happiness issued an announcement that the company’s liquidity was strained at the stage, and recently the company’s subsidiaries added new debts that failed to repay the principal and interest amount of 5.817 billion yuan as scheduled.
The announcement shows that, up to now, the total principal and interest of the debts that HHH failed to repay as scheduled is 11.054 billion yuan, and it is currently coordinating with the financial institutions involved to extend the term.
The new debt defaults include a $530 million bond issued by CFLD (Cayman) Investment Ltd. of Huaxia Happiness, which will mature on Feb. 28, 2021.
On Friday (Feb. 26), CFLD (Cayman) Investment Ltd. said in a statement via the Singapore Exchange that the company would like to reiterate its plan to meet its debt service obligations, but will need Time to resolve its short-term liquidity issues.
The announcement has strongly implied that the overseas investor company is unable to make repayment of principal and interest on Feb. 28, according to Interface News. Huaxia Happiness has issued several overseas bonds outside of China, with a total of 11 surviving overseas bonds with a size of $4.96 billion.
In response to Chinese real estate giant Huaxia Happiness getting into serious trouble, the Wall Street Journal commented that the many risks in China’s real estate sector bring new lessons about how these risks are neither predictable nor limited to one sector, real estate; more importantly, the whole episode shows that even among the attractive investment opportunities in China, there is no escape from the vulnerability of the country’s real estate sector.
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