HONG KONG, (Reuters) – Some 1.1 billion yuan ($174 millions) in asset-back notes guarantee by Shimao Group could not be redeemed at maturity next month. The trustee filed the filing as part of the ongoing debt crisis facing Chinese property developers.

Yunnan International Trust Co stated in a Tuesday filing that the income from the notes’ assets had been lower than anticipated.

Trust company stated that it will hold a meeting on March 2 with investors to discuss an unspecified agenda related to March 17th notes.

Shimao didn’t immediately reply to my request for comment.

China’s property industry has fallen into liquidity crisis due to regulatory curbs on borrowing. Evergrande is the most indebted firm in China and its struggles to repay its debts are mirrored at smaller counterparts.

Shimao went bankrupt last month and has since been trying to get more time for debt repayments, asset-backed security, trust loans, and other arrangements with creditors.

In order to raise funds, both the Shanghai-based developer as well as its chairman sold assets in China.

Moody’s (NYSE) has downgraded Shimao’s Corporate Family Rating (CFR), Wednesday, to Caa1 (from B2), citing increased liquidity risks for the company over the next six to twelve months due to its slow-than-expected fundraising efforts to pay off its debt maturities.

Moody’s changed Shimao’s view to negativity from the ratings currently under review.

Shimao tried to increase the payments on a trust loan of 6 billion Yuan by 2 years. However, some creditors were unhappy with this proposal, which did not provide any credit enhancement.

According to local media Cailianshe, Shimao didn’t pay the trust loan of 1.3 billion Yuan due on Thursday. No agreement has been made with creditors.

($1 = 6.3155 renminbi)