China's Largest Homebuilder Country Garden Faces Debt Crisis Amid Property Market Slump

Country Garden, once China's largest homebuilder, says it is unable to repay a loan and expects to default on overseas debt payments due to plunging sales.

Presales of unfinished apartments at Country Garden fell for the 6th straight month in September, down 81% from a year earlier.

Country Garden has been hurt by its heavy exposure to China's lesser developed 3rd and 4th tier cities where the property slowdown has been more pronounced.

The company says it faces "significant uncertainty" in trying to sell assets to improve its cash position and meet its nearly $15 billion in debt due within 12 months.

Country Garden says ensuring delivery of unfinished apartments is its "top operational priority" as it works with financial advisers on restructuring.