Chinese developer Country Garden says it can't meet debt payment deadlines after sales slump
Source: Associated Press
Chinese developer Country Garden says it can’t meet debt payment deadlines after sales slump
BY ZEN SOO
Updated 6:33 AM EDT, October 10, 2023
HONG KONG (AP) — Chinese property developer Country Garden warned Tuesday that it cannot repay on time a 470 million Hong Kong dollar ($60 million) loan in the latest sign of distress after Beijing clamped down on mounting debts in the industry.
The company said in a filing to the Hong Kong Stock Exchange that it “expects that it will not be able to meet all of its offshore payment obligations when due or within the relevant grace periods,” including U.S. dollar notes the firm has issued.
The company said its sales were under “remarkable pressure.”
Country Garden earlier had been hailed as a model real estate company by Chinese authorities. It had avoided defaults on debt even as rivals such as China Evergrande, the world’s most heavily indebted property firm, defaulted in 2021 after the Chinese government began restricting borrowing by developers.
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Read more: https://apnews.com/article/china-country-garden-property-debt-8cee5b3d24762ef34e1bb056389d27d1
