Chinese real estate giant in debt crisis may announce debt restructuring plan

As the bond coupon payment deadline approaches for Country Garden, China’s largest private property developer, the company could soon announce a plan to restructure its overseas debts.

The news in question appeared in local Chinese media.

Country Garden, which missed two interest payments last month, has two coupon payments due today totaling $66.8 million.

Country Garden did not respond to questions about media outlet Cailianshe’s report and whether it had made any payments.

IF YOU CANNOT PAY, YOU WILL BE IN DEFAULT.

Country Garden has $10.96 billion in foreign bonds and 42.4 billion yuan ($5.81 billion) in non-yuan loans. If Country Garden defaults, these debts will need to be restructured and the company or its assets will face the risk of liquidation by creditors.

The coupons expiring today are the coupon payments on Country Garden’s 6.5 percent bonds due April 2024 and the 7.25 percent bonds due April 2026.

The company has an additional 30 days to repay its debt in coupon payments, but if Country Garden is unable to make its $15 million coupon payment by October 17, all of its foreign debt may be considered in default. (REUTERS)