June 6, 2017 / 1:15 AM / 3 years ago

China City Construction warns of debt repayment problems

SHANGHAI (Reuters) - The China City Construction Holding Group, a state-owned infrastructure and property developer, has warned it is facing cash flow problems and could struggle to repay debts due on June 12.

The Beijing-based firm is also facing several lawsuits from creditors and some of its bank accounts have been frozen, it said in a statement to the Shanghai Clearing House late on Monday.

It issued bonds worth 1.5 billion yuan ($220.5 million) in 2014 with an interest rate of 7 percent. Repayment of the principle and interest is due this month, but China City Construction said its “financing channels have been restricted”.

China City Construction had previously failed to make interest payments on a medium term note due on March 1 this year.

The firm reported total assets of 103 billion yuan at the end of 2015.

Reporting by David Stanway and Winni Zhou; Editing by Edwina Gibbs

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