New World Faces Key Test With Bond Interest Payment Due Monday
Prospective buyers look at a model of the Deep Water Pavilia project, developed by New World Development Co., in Hong Kong on June 7.
Photographer: Lam Yik/BloombergNew World Development Co., the distressed Hong Kong developer that’s unsettled investors by delaying some debt payments, faces a critical test Monday when interest comes due on a dollar bond.
The company, controlled by the family empire of tycoon Henry Cheng, must pay the $5.05 million on the 5.875% security, according to Bloomberg calculations. Investors are closely monitoring the deadline after the builder recently jolted creditors by using an option to defer coupon payments on four perpetual notes.