By P.R. Venkat


Property developer China SCE Group Holdings has sought the suspension of trading in its U.S. dollar-denominated notes on the Hong Kong exchange as it is facing an event of default.

Trading in four U.S. dollar-denominated notes with maturity dates ranging from April 2024 to February 2026 will be suspended from Oct. 5, China SCE said Wednesday.

The company is the latest Chinese developer facing a severe liquidity crisis amid falling property sales and weak consumer confidence.

China's property downturn has led to defaults in the past by a number of developers, including debt-laden China Evergrande Group and Sunac China Holdings.

China SCE said it had yet to pay an installment of principal and interest totaling about US$61.0 million due under a syndicated loan agreement.

"The loan non-payment has resulted in the event of default under the company's offshore USD senior notes," the company said.

China SCE said that in the second quarter of this year, the company's sales continued to declined, its liquidity position became increasingly tight and the pressure to pay off its offshore debts continued to rise.

"Despite the group's best efforts, the group's liquid cash and bank deposits may not be sufficient to meet its current and future obligations," China SCE said, adding that it plans to appoint external advisers to evaluate its capital structure and liquidity, and explore feasible options.

China SCE's operations include property development, commercial real estate management, property management and rental apartments.


Write to P.R. Venkat at venkat.pr@wsj.com


(END) Dow Jones Newswires

10-04-23 0114ET