So, Greenland USA's parent company has $550 million in unpaid notes. Cash crunch could constrain Pacific Park ambitions (and raise timetable questions).

Circulating in China’s Financial System: More Than $200 Billion in I.O.U.s, the New York Times reported 8/6/19, describing an alarming trend. From the article:

But many of those private businesses are short of cash. Instead, more than $200 billion in i.o.u.s — known in the dry world of finance as commercial acceptance bills — are floating around the Chinese financial system, according to government data.

China is not running out of money. But Chinese banks are reluctant to lend to private businesses because they consider big, state-owned enterprises more reliable in paying off their debts. Alternative sources of money have dried up as regulators have cracked down in recent years on China’s shadowy world of unofficial lending.

So a growing number of companies are issuing i.o.u.s to their suppliers. Some suppliers turn around and use the notes to pay another supplier. And then — in a sign of how desperate some Chinese companies have become for money — they sell the notes for less cash than they are worth.

What about Greenland?

Here's the angle that connects to Brooklyn and Greenland USA, a subsidiary of Greenland Holding Group:

Another major property developer, Greenland Holding, which was founded by the Shanghai government and has property developments in dozens of cities across China, had $550 million worth of unpaid notes out to suppliers by the end of last year, according to its annual report. The company said that was 10 times the amount it had outstanding in 2017.

Greenland did not respond to a request for comment.

First, it seems that Greenland, which is still significantly government-owned, is considered less reliable than fully state-owned enterprises. And while it has most of its projects in China, it has expanded--and since contracted--around the world.

Second, if Greenland faces a cash crunch, well, Greenland USA is not likely to be spending money to build out Atlantic Yards/Pacific Park, but rather will try to monetize it by bringing in partners and/or leasing sites.

The cost of construction involves not merely each new building, which is typically financed with some equity contribution plus financing, but also significant spending on infrastructure: three segments of a platform (or deck), involving one, two, and three towers.

That makes it more imperative that the developer--officially the joint venture Greenland Forest City Partners--answer questions about the project timetable (which will be an issue raised at Monday's press conference).