Macau Property Opportunities Fund (LSE:MPO) saw its price halve in value on Thursday, after it announced that a planned placing to raise at least £1.7 million would not proceed.
The investment company told existing shareholders it was unable to secure the required minimum subscriptions.
The placing had been intended to support upcoming loan payments and strengthen liquidity, the company noted, adding that it now risks being unable to meet £1.5 million of loan instalments due on 15 December.
Non-payment could trigger breaches of financial covenants and give lenders the right to accelerate repayment of amounts outstanding, it said.
MPO noted that lender enforcement could lead to expedited sales of Penha Heights units, possibly at depressed prices, and that cross-default provisions may affect other facilities across the group. And, it said there is no certainty that asset realisations or lender negotiations will prevent further financial stress.
In London, Macau Property shares were down 6.85p or 51%, falling to 6.5p each.