HONG KONG (Reuters – China’s Zhenro Properties reported that it had missed interest payments for two bonds offshore and expected four more defaults due to Shanghai lockdown. It said however, that it will make payments before May ends.

The shares of the nation’s largest developer fell 10% Monday morning, while bond prices tumbled.

According to a filing, the company stated that it had been affected by the COVID lockdown crisis in Shanghai over the last few weeks. It also said that some operations of the company were stopped and sales progress and asset dispositions delayed.

The combined interest of its May 2020- and June 2021 Notes was $20.4 Million. It could not pay this amount within the 30 day grace period. They were due March 10.

Together, the two notes are worth $540million.

Zhenro warned that it could miss interest payments for its September 2020 (June 2020) and January 2020 notes, which have grace periods of April 10, April 14 or May 14. Zhenro also suggested that it could default on $23.4million principal due April 13th 2021 notes.

These four bonds are combined worth over $860 millions.

On Friday, the January 2020 bond due in April 2024 traded at 13.006 cents per dollar. This was down from 15.443 cents.

According to sources, Zhenro will extend the maturity of its offshore and onshore debt and sell assets in excess of 4 billion yuan (or $630 million) during the first quarter.

($1 = 6.3717 )