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China property crisis: troubled Country Garden fights to avert default as US$15 million offshore debt deadline looms
- The developer missed a deadline for the dollar-bond coupon payment last month, triggering a 30-day grace period that ends between October 17 and 18
- Country Garden has missed payments on bond coupons in recent months amid gloomy home sales nationwide
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Troubled Chinese developer Country Garden Holdings is fighting to avert its first ever actual default on an offshore debt as the grace period for a US$15.4 million payment enters its final hours.
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The company, once largest Chinese home builder by sales, missed an initial deadline for the dollar-bond coupon payment last month, triggering a 30-day grace period that ends between October 17 and 18 as the missed payment fell on a Sunday. The exact time of the deadline has not been revealed.
Country Garden warned it would not be able to service all of its offshore borrowings on time a week ago.
It did not immediately reply when the Post reached out on Tuesday.
The admission of possible default in a statement last week signalled the start of efforts by the Chinese property giant to restructure some of its US$16.5 billion of offshore debts.
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The Foshan-based company has hired China International Capital Corp and Houlihan Lokey as its joint financial advisers, and Sidley Austin as its legal adviser, to evaluate its capital structure and liquidity, the statement said.
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