Hong Kong developer Grand Ming Group warned investors that it has yet to repay a HK$4.8 billion (US$611.4 million) loan, with its gearing ratio surging past 200 per cent – another sign of the growing debt crisis among the city’s small and medium developers.
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In a filing with the Hong Kong stock exchange on Tuesday, the company said that it had breached financial covenants under its loan facilities, according to its audited annual results for the year ended March 31.
“The group has obtained waivers from certain lenders in respect of the breach, relating to bank borrowings of approximately HK$2,747 million.”
The company said that it was in talks with lenders to seek waivers on the outstanding payments, while adding that it had not received any demands for immediate repayment of the loans.
Grand Ming, a provider of construction services in Hong Kong, also owns many property projects, including The Grands in To Kwan Wan, The Grand Marine in Tsing Yi and Cristallo in Ho Man Tin.
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The announcement comes after Grand Ming posted a loss of HK$292.1 million for the year ended March 31, compared with a net profit of HK$298.5 million a year earlier.