BloombergAn affiliate of Chinese state-backed developer Sino-Ocean (3377) is adding to a wave of debt extensions among Chinese builders by seeking to delay a coupon payment as liquidity worsens further in the real estate sector. Sino-Ocean Capital is proposing to set back its interest payment to October instead of April for its 6 percent dollar notes maturing in October, a consent solicitation document shows. The proposal would require approval from creditors holding at least 75 percent of the note's outstanding value, the document says. The development suggests weaker support from Sino-Ocean Group, China's 24th largest builder by sales, which holds a 49 percent stake in Sino-Ocean Capital, and raises questions about the ability of the major shareholder to service its own debt. Sino-Ocean Capital is also facing a winding-up petition in Hong Kong filed by Great Wall International Investment VIII, and a court hearing has been scheduled for June 7.
