Beijing Hongkun unit misses coupon, defaults on 14¾% notes due 2022

By Marisa Wong

Los Angeles, May 10 – Hongkong Ideal Investment Ltd. was unable to pay the accrued interest due on April 8 on its 14¾% senior notes due 2022 (ISIN: XS2059534342) guaranteed by Beijing Hongkun Weiye Real Estate Development Co. Ltd., according to an announcement on Tuesday.

The company had a 30-day grace period to pay the interest, but the grace period has expired with no payment made. As a result, an event of default has taken place.

The company said adverse factors such as the macroeconomic environment, the real estate industry, financial environment and the effect of Covid-19 affected its ability to make the coupon payment.

As of May 10, the total outstanding principal amount of the notes is $193 million.

The company said it is in the process of assessing its liquidity position, overall business operation and operating environment.

The company added that will also engage in discussions with noteholders, with the goal of reaching a consensual solution and protecting the interests of its stakeholders.

The real estate developer is based in Beijing.

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