By Gina Lee

Investing.com – Fantasia Holdings Group Co. Ltd., (HK:), failed to make Monday’s payment on a bond of $205.7 million. This is the latest Chinese developer to be in a financial crisis.

Separately, property management company Country Garden Services Holdings Co. said that Fantasia Holding’s Colour Life Services Group unit failed to repay a CNY700 million ($108.55 million) loan that was also due on Monday and a default is likely, according to a Fantasia Holdings statement.

The management and board “will assess the potential impact on the financial condition and cash position of the Group” stemming from the skipped bond payment, the Shenzhen-based company added.

China’s property sector is coming under increasing pressure, with lower-rated developers facing the highest bond yields in a decade. China Evergrande Group (HK). Also suffering from financial woes, the company is moving towards a restructuring. However, fears of a market contagion and larger debt problems continue to persist. Trading in China Evergrande and Evergrande Property Services Group shares was suspended on Monday pending an announcement on a “major transaction.”

Prices on Fantasia Holdings’ bonds also tumbled on Monday as speculation on whether it would make good on its debt mounted. According to Trace data, the 6.95% dollar-denominated notes due December 2021 fell by nearly 30 cents to 38 cents.

Fitch Ratings cut Fantasia’s credit grade several notches to CCC- on Monday, while Moody’s Investors Service also cut the company’s rating by one notch to B3. S&P Global (NYSE:) Ratings lowered its long-term rating for Fantasia Holdings to CCC from B on Sep. 29, due to “elevated risk” that it may not be able to implement a concrete repayment plan over the next several weeks for upcoming maturities.