By Yifan Wang

Struggling Chinese real-estate company China Fortune Land Development Co. said its defaults on debt have recently increased by over 8.38 billion yuan ($1.29 billion), including principal and interest, due to temporary liquidity shortages.

The company said it is in talks with financial institutions involved in the defaults about potential extensions for the borrowings.

The Beijing-based company said it will also work on a mid- to long-term plan to tackle its liquidity problems with the support of the local government.

China Fortune Land's total debt defaults have reached CNY19.42 billion in principal and interest as of late Tuesday.

The latest default came weeks after the company said it hadn't yet repaid a $530 million dollar bond that came due Feb. 28.

China Fortune Land's credit ratings have been slashed deep into junk territory.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

03-10-21 0425ET