On March 10, Bloomberg carried a news item which said no payment had been made towards a bond from Chongqing Sincere Yuanchuang Industrial with RMB444.5 million ($91.9 million) outstanding that matured on March 9, based on quotes from two bondholders.

“The firm’s failure to repay on schedule would constitute a default,” said Bloomberg, according to the bond prospectus seen. The bondholders said they have not received any proposal regarding a bond swap or payment extension.

In a statement on March 10, Sincere insinuated that the default was because of City Developments (CDL) withholding its approval for payments and finance-related matters. On March 11, CDL calls what Sincere said as “misleading” and “incorrect” and that CDL should not be held for the default.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook