NWD to defer bond interest payments as debt woes deepen

New World Development (0017) has decided to defer interest payments on four perpetual bonds, adding to investor concerns as the Hong Kong developer struggles with massive debt load.

In a filing on Friday, the company – controlled by tycoon Henry Cheng Kar-shun's family – confirmed the delay, which involves about US$77.2 million (HK$602.16 million) in obligations due next month, according to Bloomberg estimates. 

A spokesperson for the developer said that, given the current market volatility, the company continues to manage its overall financial debt and remains committed to its existing financial obligations.

STAFF REPORTER