| This is where we point and laugh. |
[NewsLax] According to Nikkei Asia sources, Fantasi Holdings Group was unable to buy back $205.7 million of corporate bonds that matured on October 4. At the same time, this Chinese real estate group also failed to repay a short-term loan of 700 million yuan ($108.56 million).
According to the bond offering prospectus, Fantasia has a 30-day grace period to arrange to buy back the bonds, to pay the bondholders or else it will be declared insolvent.
Reportedly, Fantasia Group, founded by the niece of former Vice President of China, Zeng Qinghong, has $762 million in international bond debt due this year and an additional $1.15 billion. worth of bonds maturing in 2022, not to mention 6.4 billion yuan of domestic bonds.
On October 4, credit rating agency Fitch Ratings downgraded Fantasia's rating to "CCC". Previously, S&P shortened the score to "CCC" from "B" on September 29. Moody's also cut the rating to "B3" last month. |