China-Based Developer Says Bond Default Triggers Earlier Repayment Deadlines, Pulls Dividend

China-Based Developer Says Bond Default Triggers Earlier Repayment Deadlines, Pulls Dividend
Men work at the construction site of a highrise building in Beijing, China, on Oct. 18, 2021. Thomas Peter/Reuters
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Chinese developer Modern Land (China) said on Monday a default on a bond repayment last week has pulled forward repayment dates for a further $321 million worth of notes, and the company withdrew an interim dividend to hold on to cash.

The development highlights the impact of China Evergrande Group, which narrowly averted a costly default, on the rest of the high-yield sector as liquidity dries up and sales slow.