Offshore lenders face Chinese property developer debt headache

Creditors of property companies worried over repayments

Creditors that extended offshore loans or bought high-yield convertible bonds from Chinese property developers before late 2007 face major problems retrieving all the money they are owed, as $1.35 billion of debt matures within the next 18 months.

Many mainland developers used their Hong Kong-listed subsidiaries to tap offshore funding when their domestic funding sources tapered off. This occurred as the Chinese authorities moved to cool the once-overheating property sector in 2007. As foreign i