Real Estate
Another Chinese Developer In Debt Trouble - Report

Cracks continue to open up in the world of mainland China's real estate developer sector.
Chinese developer Fantasia Holdings Group reportedly said that a
subsidiary was facing a wind-up petition filed by its creditors,
potentially forcing it into bankruptcy and adding to woes in the
sector caused by the
Evergrande saga.
The Shenzhen-based developer said in a stock exchange filing last
Thursday evening that the petition was related to a $149 million
loan of which Fantasia Investment Holdings was a guarantor,
according to the South China Morning Post.
It is the first time that a wind-up petition related to offshore
debts has been filed against a mainland developer or its
subsidiaries, the report said.
“The company will seek legal advice to protect its legal rights
and interests and take all necessary measures including
maintaining a constructive dialogue with the petitioner to
address the matter,” Fantasia is reported to have said in the
filing to the Hong Kong stock exchange.
Fantasia constructs high-end residential projects and luxury
apartments in mainland cities like Beijing and Wuhan. It was
founded in 1996 by Zeng Jie, the niece of former vice-president
Zeng Qinghong.
In October it failed to repay a $205.7 million bond due on 4
October, and the company said there was no guarantee that it
would be able to meet its other financial obligations.
The report said that Fantasia is one of at least six Chinese
developers struggling with vast debt that have either defaulted
or asked investors to wait longer for repayment.
The debt crisis of Chinese developers began in early October when
China Evergrande Group, with liabilities of $300 billion,
struggled to avoid defaults on offshore debt. The situation has
rattled the confidence of international investors in China,
already
made nervous by Beijing’s moves to rein in a number of
sectors.