The group’s short-term payment defaults during the crisis become less likely due to the deferred repayments.
(Photo: Reuters)
Shanghai/Hong KongAccording to insiders, the ailing Chinese real estate developer Country Garden may postpone the repayment of maturing onshore bonds. Creditors have agreed to extend by three years the repayment deadline for six of eight onshore bonds worth 10.8 billion yuan ($1.48 billion), two sources familiar with the matter told Reuters on Tuesday.
Country Garden did not immediately respond to a request for comment from Reuters. At the beginning of the month, the largest Chinese real estate developer was able to avert a payment default at the last minute by extending the repayment periods.
Country Garden is sitting on a mountain of debt equivalent to 178 billion euros. Liabilities amounting to almost 14 billion euros will be due in the next twelve months alone. This is offset by liquid assets of less than 13 billion euros.
More: Crisis-ridden real estate company Country Garden catches up on critical payments
