HONG KONG – A shrinking land bank and sluggish property demand are likely to hamper the plans of a growing number of private Chinese developers who have defaulted on their debt and are restructuring it to win breathing room to revive their fortunes.
Those hurdles could hinder the drastic improvements in sales and liquidity the realtors need to resuscitate their business and service debt in the long-term, according to five developers and restructuring advisers.
That could necessitate a second round of debt restructuring eventually at some of the developers, they said.
“Most of the restructuring deals we see for now only buy time for developers. But problems might come back if the developers can’t generate cashflow as they expected,” said…
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