(Bloomberg) --
Chinese developer and repeat defaulter Sunshine 100 China Holdings Ltd. has missed payment on $179 million of debt and interest payments due Sunday, as higher borrowing costs hit indebted companies across the sector.
Sunshine 100 said in a filing that it won't be able to repay the $170 million of principal and more than $8.9 million of interest on its 10.5% senior notes due 2021. The company said in August that it wasn't able to repay the principal, premium and accrued interest of its 2021 bonds. Its default will also trigger provisions under some other debt instruments.
The firm has struggled to meet debt obligations this year as authorities cracked down on excessive leverage in the property industry. It conducted a distressed repurchase that S&P Global Ratings said was “tantamount” to default in March and failed to repay a dollar bond due August 11. Sunshine 100 has $385 million of outstanding dollar notes including those with missed payments across three bonds, Bloomberg-compiled data show.
Clock Is Ticking on China Evergrande's Debt Crisis: QuickTake
Distress among Chinese real estate firms is spreading, amid a debt crisis at giant China Evergrande Group that's intensifying ahead of a Monday deadline for two coupon payments. The broader sector strains have pushed yields on Chinese junk dollar bonds -- many of which come from the industry -- near record highs. That's made it difficult for distressed developers to refinance their maturing debt in the offshore market, which has contributed to a wave of defaults.
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