BUZZ-China's Powerlong says cash-strapped to meet debt payment, shares fall

Reuters2023-11-30

** Shares of Powerlong Real Estate fall as much as 12.7% to HK$0.69, lowest since Nov 17, in their fifth straight session of fall

** Stock on track for the biggest one-day pct drop since March 30, if losses hold; biggest pct loser in Hang Seng Composite Index on properties and construction stocks

** The Chinese property developer expects its cash on hand and bank deposits would not be sufficient to cover its existing and future debt

** Says it has not made relevant interest payment for its 5.95% senior notes due April 2025 and will result in an event of default under the terms of certain offshore long term interest-bearing bank and other borrowings of the company

** Says co continues to maintain normal business operations while a holistic solution to all of its existing debt should be explored immediately to secure the sustainable operations of the group

** Co will work with its creditors to explore all feasible options to pursue a holistic solution to the current liquidity issues

** Hang Seng Mainland Properties Index gains 0.8%, Hang Seng Composite Index on properties and construction stocks

slips 0.02%

** Stock down 54.1% YTD

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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