Chinese developer Sunshine 100 defaults on $170 million of bonds

Chinese developer and repeat defaulter Sunshine 100 China Holdings has missed payment on $179 mn of debt and interest payments due Sunday, as higher borrowing costs hit indebted companies of the sector.

Sunshine 100 said in a filing that it won’t be able to repay the $170 million of principal and more than $8.9 million of interest on its 10.5 per cent senior notes due 2021. The company said in August that it wasn’t able to repay the principal, premium and accrued interest of its 2021 bonds. Its default will also trigger provisions under some other debt instruments.

The firm has struggled to meet debt obligations this year as authorities cracked down on excessive leverage in the property industry. It conducted a distressed repurchase that S&P Global Ratings said was “tantamount” to default in March and failed to repay a dollar bond due August 11.