Sunshine 100 China defaults on 12% senior notes due 2023

By Marisa Wong

Los Angeles, Oct. 3 – Sunshine 100 China Holdings Ltd. is not able to repay the principal amount and accrued interest due on its 12% senior notes due Oct. 3, 2023 (ISIN: XS2293581117), according to a company announcement on Tuesday.

As a result, an event of default has occurred.

The company said it is unable to pay the principal amount and the accrued interest due to liquidity issues arising from the adverse impact of a number of factors, including the macroeconomic environment and the real estate industry.

The event of default will also trigger cross default provisions under some of the other debt instruments of the company and its subsidiaries, which may become immediately due and payable if the creditors choose to accelerate.

As of Oct. 3, the company has not received any notice regarding action to accelerate by any creditors.

As of the company’s announcement on Tuesday, the total outstanding principal of the notes is $120 million, and the total accrued interest is $38.4 million.

The company said it has been proactively communicating with the noteholders to reach a repayment extension or other repayment arrangements with those holders as soon as possible.

The property developer is based in Beijing.

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