Troubled Chinese developer Country Garden managed to avoid default – Kommersant
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One of the largest Chinese developers, Country Garden paid part of their debts, thus avoiding default.
On the possibility of Country Garden default warned last week. The company missed paying $22.5 million on two issues of its dollar-denominated bonds due on August 7. The grace period for the payment of income to bondholders ended on September 5-6, after which a technical default could occur, but Country Garden managed to find funds to pay creditors. According to Bloomberg, the company is due seven payments on loans in dollars, yuan, Thai baht and Malaysian ringgits in September.
Country Garden’s total debt is about $187 billion. In the first half of the year alone, the company’s loss amounted to 51.5 billion yuan ($7 billion). Country Garden attributed the loss to “the depth and magnitude of the downturn in the Chinese real estate market, especially in smaller Chinese cities” for which it “was not prepared.”
Country Garden’s statement about a possible default has seriously alarmed investors and market participants who recently witnessed the crisis of another large Chinese developer – Evergrande, whose debt obligations amount to $ 328 billion and which last year survived technical default.
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