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Hong Kong developer Road King defaults after creditors reject debt amendments

Listed firm suspends nearly US$80 million in interest payments and distributions while seeking restructuring discussions with creditors

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A view of Crescent Green, developed by Road King Infrastructure, in Kam Tin North, Yuen Long. Photo: Handout
Yuke Xiein Beijing
Road King Infrastructure suspended US$22.6 million in interest payments and will defer distributions of US$56.5 million on perpetual securities, making it the first Hong Kong-based developer to default on bond payments since China’s property crisis began in 2021.
The firm failed to win enough creditor consent for debt amendments aimed at easing short-term cash strain and missed interest payments on two notes due in July, it said in a filing with the Hong Kong stock exchange on Thursday. The company said it would suspend all principal and interest on its offshore bank debt, notes and perpetual securities “to ensure fair and equitable treatment of all offshore creditors”.

The developer had US$1.51 billion in offshore debts, which included bank loans and notes, plus US$890.5 million in perpetual securities. It will suspend payments on US$22.62 million in interest, with deferred distribution on the perpetual securities amounting to US$56.46 million.

The decision could prompt creditors to demand quicker repayment or take other actions, though the company said it had not received any such notices. Road King would “explore a holistic solution” to address its current challenges, but did not intend to use proceeds from asset sales to repurchase its notes and perpetual securities. Instead, it would use such proceeds to fund a broader restructuring.

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