Debt-laden developer China Aoyuan tumbles after failing to meet US$651 million of payment demands triggered by ratings downgrades


By Eric Ng

Cash-strapped property developer China Aoyuan Group has failed to meet creditors’ demands for the payment of US$651 million in debt following recent credit rating downgrades. Its stock fell 12 per cent to HK$1.78 on Friday.

The non-payments may trigger other creditors to request accelerated debt repayment, as permitted under agreements entered into by the company.

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