Embattled Hong Kong developer New World Development (NWD) said Thursday night that it will continue to prioritise real estate development as its core business this year and proceed with project launches, amid market rumours that the company is at risk of a default.
Residential sales in Hong Kong continue to improve, and the company will continue to “market its diversified projects in the mainland” market, it said in a statement.
“The group’s management adheres to a business policy rooted in prudence and pragmatism, strengthening its market-oriented approach and enhancing project return rates,” the statement said. The company delivered more than 70 per cent of its annual sales target for the mainland China market within the six months leading up to December, it added.In a separate filing to the Hong Kong stock exchange, also on Thursday, the company reiterated its plan to “carry out its businesses as usual and continue to engage with its stakeholders, including its lenders and holders of debt securities”....Read Full Article >>➤
The statements came after Bloomberg reported earlier on Thursday that PJT Partners, a debt advisory firm, talked to some of the distressed developer’s creditors about the possibility that debt negotiations could lead to a default.
Specifically, certain insolvency clauses in NWD’s dollar bonds could potentially be triggered after the company initiated discussions with lenders, according to the report.
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