Country Garden's Onshore Bond Extensions Face Critical Test Amid China's Real Estate Slump
Chinese developer Country Garden is facing a crucial round of voting by creditors to extend the maturities of eight onshore bonds by three years, as the company grapples with liquidity pressure amid a slump in sales. The voting comes after Country Garden narrowly avoided defaulting on its debt twice this month. The developer, which has not yet defaulted on its debt obligations, faces 108.7 billion yuan ($14.9 billion) of debts due within a year, while its cash level stands at around 101.1 billion yuan. A default by Country Garden could worsen China's real estate crisis and strain its banking system, potentially impacting the overall economy.