By Quentin Webb

Struggling Chinese real-estate company China Fortune Land Development Co. said it needed time to resolve a short-term cash shortage and hadn't yet repaid a $530 million bond that comes due Feb. 28.

"The Company would like to reiterate that it intends to honor its debt obligations but needs time to address its short term liquidity issues," CFLD (Cayman) Investment Ltd., the unit that issued the bonds, said in a statement Friday to the Singapore stock exchange.

CFLD said it is formulating an overall plan to tackle its liquidity problems and plans to seek a "consensual resolution" after a dialogue with all offshore bondholders. It said it plans to treat both onshore and offshore creditors in a fair and reasonable manner.

Dollar bonds from China Fortune Land, a developer of industrial parks, have plunged in recent weeks, indicating investors see little chance of being repaid in full. As of Thursday, its 2024 bonds were priced at less than 36 cents on the dollar, according to Factset, giving them a yield of more than 52%.

China Fortune Land is a major corporate borrower. It has $9.8 billion of bonds outstanding, including $4.6 billion of offshore bonds, according to a Feb. 6 note by credit analysts at Goldman Sachs. The company's credit ratings have already been slashed deep into "junk" territory.

Write to Quentin Webb at quentin.webb@wsj.com

(END) Dow Jones Newswires

02-26-21 0503ET