(Reuters) – Chinese developer Country Garden Holdings was found to be in default on a U.S. dollar bond for the first time, Bloomberg reported on Wednesday, citing a financial advisory.
Country Garden failed to pay interest on the bond during a grace period that ended last week and this “constitutes an event of default,” Bloomberg reports, citing the notice sent to creditors by a fiduciary administrator.
Country Garden did not immediately respond to a request for comment.
Country Garden was due to settle a $15 million coupon payment on a bond maturing in September 2025 following a grace period that ended last Wednesday. But two bondholders told Reuters they had not received the money when that deadline expired.
With nearly $11 billion in offshore bonds and $6 billion in non-yuan-denominated loans, a Country Garden default would pave the way for one of the largest corporate debt restructurings in China.
(Reporting by Gursimran Kaur in Bangalore and Xie Yu in Hong Kong; writing by Christopher Cushing and Jason Neely, Blandine Hénault for the , editing by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
