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Chinese developer Fantasia denies creditor claim on unit’s shares -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Two men are seen outside Fantasia Holdings, a Chinese developer, in Shenzhen. Guangdong Province, China. November 10, 2021. REUTERS/David Kirton

HONG KONG (Reuters] – A claim from a creditor alleging that a $96.98million loan for which it failed to pay a payment had been secured by shares of its property management division, Fantasia Holdings has denied.

TFI Securities and Futures Ltd informed Fantasia that it had the right to charge 780,000,000 shares of the unit, Colour Life Services Group. Fantasia stated in late Friday’s filing to Hong Kong Stock Exchange.

Fantasia shares have been suspended from Nov. 29, pending insider information. Trading will resume on Monday, the company said.

This developer missed $205.7 million of offshore payments due Oct. 4. He is just one of many Chinese developers who have not made debt payments. It has shaken global financial markets and caused fear in the international community.

Kaisa Group and China Evergrande Group, which have the largest offshore debt piles in China, failed to pay their offshore bond payments by the due date this week. This prompted Fitch, a rating agency, to downgrade them to “restrictedDefault”.

Fantasia filed Friday’s filing stating that it had sold its interest in the Ninbgo project in eastern China to reduce liquidity pressures. The sale was for 200 million Yuan ($31,000,000).

Developer said that its onshore major unit had reached an agreement with holders of 7.8% yuan bonds, due to mature next year. The bond will be extended until 2024 and the interest due by Nov. 29 paid in stages.

Moody’s (NYSE) withdrew Friday’s Fantasia ratings citing insufficient data

Fantasia reported late last month that Fantasia had filed a winding petition against an unrelated unit to a $149million outstanding loan.

Pan Jun, Chairman of the Company’s WeChat Account on Monday stated that the firm had reviewed an initial proposal for restructuring its offshore debt with its legal and financial adviser. It was also actively talking to 95% the total holders of its $4 billion offshore bonds.

Fantasia hired Houlihan Lokey, (NYSE:), as a financial advisor and Sidley Austin to serve as legal counsel in October.

($1 = 6.3685 renminbi)

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