In a statement on March 10, Sincere insinuated that the default was because of City Developments (CDL) withholding its approval for payments and finance-related matters. On March 11, CDL calls what Sincere said as “misleading” and “incorrect” and that CDL should not be held for the default.
On March 10, Bloomberg carried a news item which said no payment had been made towards a bond from Chongqing Sincere Yuanchuang Industrial with RMB444.5 million ($91.9 million) outstanding that matured on March 9, based on quotes from two bondholders.
“The firm’s failure to repay on schedule would constitute a default,” said Bloomberg, according to the bond prospectus seen. The bondholders said they have not received any proposal regarding a bond swap or payment extension.
