Debt ridden Chinese property developer Shimao Gorup’s shares eased on Thursday after the company sought to extend payments of a $947 million trust loan and reports said that a court had frozen sale of 178 apartments financed by the loan.
Earlier on Wednesday, Shimao proposed to its creditors it would repay the onshore trust loan in states in the next three year of 1.3 billion yuan due on Thursday, according to Reuters sources.
The trust loan was used to finance a large mixed-used development in Shenzen. Cailianshe, a financial journal earlier reported of 178 unsold apartments in the development stage have been frozen by judicial authorities.
Shared eased by 1.4% in the Hong-Kong exchange narrows a slide of 3% earlier. Hang Seng Mainland Properties index saw a loss of 1.1%.
Shimao has been struggling to extend debt with creditors and disposed asset to raise funds after it defaulted on a trust loan last month.
The firms also announced it is in talks with relevant parties of Shenzen government to introduce strategic investors in the development.
