Country Garden Teeters on the Edge of Default as Offshore Debt Deadline Looms
Country Garden, China's largest private property developer, has allowed a $15 million coupon payment deadline to pass without making the payment, raising concerns of a default on its offshore debt. Non-payment would trigger cross defaults in other Country Garden bonds, potentially leading to one of China's biggest corporate debt restructurings. The company has almost $11 billion of offshore bonds and has stated that it expects to be unable to meet all of its offshore debt obligations. China's real estate sector has been grappling with liquidity problems, and the prolonged woes have had a negative impact on the country's economy.