(Reuters) - Chinese developer Modern Land (China) said on Monday a default on a bond repayment last week has pulled forward repayment dates for a further $321 million worth of notes, and the company withdrew an interim dividend to hold on to cash.
The development highlights the impact of China Evergrande Group, which narrowly averted a costly default, on the rest of the high-yield sector as liquidity dries up and sales slow.
Modern Land said last week it had not repaid principal and interest on its 12.85% senior notes with an outstanding principal of $250 million.
The non-payment triggered conditions under which other financing arrangements, including 9.8% green senior notes due 2023 worth $321 million, may become immediately payable. No bondholders have yet enforced any action, the company said.
However, the company said it has already got notices from an offshore creditor demanding early repayment of $23.6 million, and was in talks for a waiver to avoid the payment and further enforcement.
The developer also withdrew its recommendation for an interim dividend of HK4.81 cents per share declared in August due to "unexpected liquidity issues", and was currently taking stock of other repayment obligations.