Modern Land (China) Misses Dollar Bond Payment

Modern Land (China) missed the dollar bond coupon and maturity payment on its $250mn 12.85% bonds due October 25. The developer is working with its legal counsel Sidley Austin and expects to engage independent financial advisors soon to assess its capital structure and come up with a solution to its liquidity problems. The news comes less than a week after it called off its consent solicitation to extend the maturity on its 12.85% 2021s by three months and repay $87.5mn in principal. This is the fourth developer to miss an offshore bond payment after Evergrande, Fantasia, Sinic and Sichuan Languang. Evergrande however did manage to make payments on two of its dollar bonds before the grace period ended.

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