New World stares key test with paying mortgage interest on Monday | Einsmark news

(Bloomberg) -New World Development Co., the distressed Hong Kong developer who is uneasy by postponing some debt payments, stands a critical test on Monday when interest is paid on a dollar. The company, controlled by the family -rich of the tycoon Henry Cheng, has to pay the $ 5.05 million on the 5.875% security, according to Bloomberg calculations. Investors carefully monitor the deadline after the builder recently used scrubbed creditors using an option to postpone coupon payments on four eternal notes. However, the interest owed on Monday is on a regular mortgage that does not carry such an option to return payments. According to a presentation document seen by Bloomberg News, an event of default can be caused if the new world does not meet the coupon within 14 days of the expiration date. Generally in credit markets, it can sometimes take two to three days before dollar mortgages receive interest payments as soon as it is started. New World, who is struggling with HK $ 210.9 billion ($ 26.9 billion) loads, has the highest debt burden of any major Hong Kong developer. Any signal of a possible default by the locally well -known builder can strengthen concerns about sluggish property market conditions and possible effects of the waste. New World did not immediately respond to a request for comment. A spokesman said late last month that the company continued to manage its overall financial debt, while taking into account the current volatility in the market and still complying with its existing financial obligations. News underlined the new world’s ability to bring money over the weekend, even if it should be used to discount homes. The builder and its partners sold 138 apartments at a new project in Hong Kong within a few hours after offering lower prices, an essential step to prevent the liquidity from worsening. The builder prioritized a conversation with banks for months to refinance an HK $ 87.5 billion loan to alleviate the liquidity stress. Separately, it also uses one of its most valuable assets in Hong Kong – a port complex that houses the luxury shopping center K11 Museum – to seek a new loan of as much as HK $ 15.6 billion. The relevant new world’s mortgage has $ 172 million to outstanding principal and is currently indicated at about 65 cents on the dollar, according to Bloomberg composed data. Investors have become increasingly concerned about the liquidity conditions of the new world last month after choosing not to save eternal security. Meanwhile, mortgage holders are getting frustrated about the level of its financial disclosure, because it prioritizes communication with banks during the loan talks. The firm received written obligations for 87% of its refinancing objective, as it completed the agreement with more than 50 banks by the end of June, Bloomberg reported earlier. Debt Advisor PJT Partners Inc. have warned mortgages that a liability management exercise for the securities is the only way for the new world to deal with debt -to -fall dates and maintain the value of the equity. -With help from Apple Ka Ying Li. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP