Crisis-hit Chinese property developer Country Garden has said it’s won bondholders’ approval to postpone payments on three onshore bonds to September, as it desperately works on an offshore debt restructuring plan
The developer, which is China’s largest private real estate outfit and has already defaulted on $11 billion of offshore bonds, had in September extended the maturities of eight onshore bonds worth $1.49 billion by three years.
China’s property sector has slumped into a debt crisis since mid-2021, leaving many companies in default and homes uncompleted.
Also on AF: TikTok Plans Legal Battle as US Senate Passes Divest-or-Ban Bill
The first instalments and interest of the three yuan bonds in question were originally due in March and June, Country Garden said in a statement, without giving details of the total value involved.
Two of the payments, under the extension plan finalised last year, were already overdue earlier this month and have entered into a 30-day grace period, according to Chinese media.
“This [bondholders approval]… effectively resolved the immediate repayment risk of the company, and provided a valuable window for the company to raise funds for repayment,” it said.
- Reuters with additional editing by Sean O’Meara
Read more:
China’s Country Garden ‘Hires Kroll For Liquidation Assessment’
PwC Probed For ‘Enabling Evergrande Misconduct For Years’
Country Garden Warns of ‘Severe’ Tests in China Property Market
Evergrande Founder Banned, Unit Fined For Securities Fraud
