Moody’s Downgrades Newland

Moody’s has once again downgraded troubled real estate developer Newland International Properties, to Ca from Caa3, it says. The agency cites the “uncertainty of the final recovery of the bondholders, which is expected to be significantly lower than the current balance of the bond.” The downgrade of Newland’s $220m in debt comes as the company continues to work to restructure the obligations which stem from its Trump Ocean Club International Hotel & Tower development in Panama. Moody’s last downgraded Newland’s debt in October to Caa3 from B3, and placed it under review. Shortly after in mid November, the company missed its first capital payment due on the 9.5% 2014 bonds. Newland has retained the services of the Gapstone Group to advise on the restructuring and is currently in continued talks with bondholders.