Chinese developer Fantasia denies creditors’ claim over unit’s shares


Men stand outside the headquarters of Chinese developer Fantasia Holdings in Shenzhen, Guangdong province, China on November 10, 2021. REUTERS / David Kirton

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HONG KONG, Dec.11 (Reuters) – Chinese developer Fantasia Holdings (1777.HK) has denied a claim by a creditor that a $ 96.98 million loan it defaulted on was backed by shares of its property management unit.

TFI Securities and Futures Ltd has told Fantasia that it has the right to apply the charge of 780 million shares of the unit, Color Life Services Group (1778.HK), Fantasia said in a filing filed with the Hong Kong stock exchange on Friday evening.

Fantasia shares, suspended since November 29 pending inside information, will resume trading on Monday, he said.

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The developer, who missed payment of $ 205.7 million in offshore tickets due on October 4, is one of many indebted Chinese developers who have defaulted on their debts, causing global financial markets to shake. in recent months with the fear of blows. on effects around the world.

Bigger peers China Evergrande Group (3333.HK) and Kaisa Group (1638.HK), with the country’s two biggest piles of offshore debt, missed offshore bond payment deadlines this week, prompting the rating agency Fitch to downgrade them to “limited default”. Read more

In Friday’s filing, Fantasia said it sold its interest in a Ninbgo development in eastern China for 200 million yuan ($ 31 million) in an attempt to ease liquidity pressures.

The developer said its main onshore unit reached an agreement last month with holders of a 7.8% yuan bond due next year to extend the maturity until 2024 and pay the interest that was due November 29 in stages.

Moody’s withdrew its Fantasia ratings on Friday, citing insufficient information.

Late last month, Fantasia said a liquidation petition had been filed against a unit linked to an outstanding $ 149 million loan.

Chairman Pan Jun said on the company’s WeChat account on Monday that the company discussed an initial proposal on restructuring its overseas debt with its financial and legal advisor, and is actively discussing with 95%. of the holders of its $ 4 billion offshore bonds that it has identified.

Fantasia hired Houlihan Lokey as financial advisor and Sidley Austin as legal advisor in October.

($ 1 = 6.3685 yuan Chinese renminbi)

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Reporting by Clare Jim; Editing by William Mallard

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