China Property Crisis Worsens, Another Major Developer Defaults
Chinese developer Country Garden Holdings has been deemed in default on a U.S. dollar bond for the first time, Bloomberg News reported on Wednesday, citing a notice.
Country Garden's failure to pay interest on the note within a grace period that ended last week "constitutes an event of default", Bloomberg reported citing the notice to holders from a trustee.
A grace period ended last Wednesday as Country Garden was due to settle a $15 million coupon payment on a bond due in September 2025.
Non-payment would put the developer at risk of default on its nearly $11 billion of outstanding offshore bonds and could trigger one of China's biggest corporate debt restructurings.