Chinese real estate company Country Garden may default today

If China’s largest private real estate development company, Country Garden, fails to pay its $15 million bond coupon today, all of its foreign bonds will be considered defaulted.

The 30-day grace period given to Country Garden to make the $15 million coupon payment ends today.

The Chinese real estate giant announced in a statement on October 10 that it may not be able to meet all of its foreign bond payment obligations.

Country Garden has not paid coupons on some of its bonds in recent weeks, but the 30-day grace period for those payments has not expired.

PAYMENT NOT MADE

A Country Garden bondholder, who asked not to be identified, said no payments were made today. Country Garden left questions unanswered.

The default by Country Garden, which has about $11 billion in foreign bonds and $6 billion in foreign loans, will pave the way for one of China’s biggest debt restructurings.