(Bloomberg) -- Chinese property developer Sunac China Holdings Ltd.’s shares and dollar notes fell to their lowest levels in months, as investors grow anxious about upcoming interest payments amid sluggish sales.

Shares of the defaulted builder tumbled as much as 11% in Hong Kong before paring some losses on Wednesday. They traded at HK$1.75 at 3:35 pm local time, the lowest price in over three months. A 6.5% dollar note due in 2027 dropped 1.3 cents to 11.9 cents, the lowest since October, according to data compiled by Bloomberg.

Sunac, the first major Chinese builder to reorganize its offshore debt in 2023, must make an interest payment of about $60 million in cash on its restructured dollar notes by late March, according to Bloomberg calculations based on repayment obligations. Meanwhile, the company’s sales woes continued in December, resulting in an annual drop of 44% in 2024.

The prolonged voting over its proposal to restructure about 15.5 billion yuan ($2.1 billion) of onshore bonds is also adding to the anxiety. The developer presented the onshore debt plan to investors in mid-November but hasn’t mustered enough support for the proposal yet.  

“The recent decline in Sunac’s stock and bond prices may be due to a lack of progress in its debt restructuring and a steep year-on-year decrease in sales,” said Jeff Zhang, an analyst at Morningstar Inc. 

Sunac didn’t immediately provide a comment when reached by Bloomberg on Wednesday. 

Separately, Chinese local media The Paper reported Tuesday that the developer is seeking a second restructuring of its offshore debt, as it may not be able to meet a September maturity deadline. 

In 2023, Sunac extended part of its offshore debt into six tranches of bonds, including a short-dated tranche A note of $500 million due Sept. 30. The note’s maturity can be extended by a year. 

“The reported second restructuring of Sunac’s offshore debt was a disappointment but not entirely a surprise to the market given the company’s poor contracted sales, slow asset sales, and uncertainties of its onshore debt restructuring,” said Zerlina Zeng, head of East Asia corporate research at Creditsights Singapore LLC. 

--With assistance from Jing Jin.

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