Distressed Chinese developer Country Garden Holdings Co. warned about “major uncertainties” in redemption of its bonds, as it said that trading in some of its local notes will remain suspended.
(Bloomberg) — Distressed Chinese developer Country Garden Holdings Co. warned about “major uncertainties” in redemption of its bonds, as it said that trading in some of its local notes will remain suspended.
The builder, whose cash crunch threatens even worse impact than defaulted peer China Evergrande Group given it has four times as many projects, made the comments in a filing with the Shanghai stock exchange.
Country Garden, which was previously the nation’s biggest builder, is on the verge of default if it doesn’t make dollar bond interest payments missed earlier this month within a 30-day grace period. The crisis at the firm, helmed by one of China’s richest women, Yang Huiyan, has pushed its notes deeper into distress and weighed on China’s broader financial markets.
It had suspended trading of 11 onshore notes issued by the company and subsidiaries earlier this week. The builder has been soliciting feedback on a proposal to extend payment of a 3.9 billion yuan ($535 million) note due Sept. 2, people familiar with the matter said earlier this week.
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