Chinese developer Country Garden has delayed the deadline for bondholders to vote on extending payment on a 3.9 billion yuan note by three years.
Shares of Country Garden are expected to increase by 14.8% after selling a minority stake in a mixed development in Guangzhou for 1.3 billion yuan ($178.35 million) and extending a creditor voting deadline to delay repayment for an onshore private bond worth 3.9 billion yuan.
Chinese developer Country Garden reassured investors that its $100 billion project in Malaysia is proceeding as planned and that it has sufficient assets, despite concerns about its financial strength and missed coupon payments. The company's projects in Malaysia are operating normally and its overall operation in the region is "safe and stable," according to a statement from its Singapore and Malaysia unit. Malaysia's central bank also stated that the current situation with Country Garden is not expected to have a material impact on the property market in Malaysia.
China's troubled real estate company Country Garden plans to raise funds to avoid default and repay its loans, amid concerns that its liquidity crisis could have a wider impact on China's economy.
China's largest property developer, Country Garden, is on the brink of defaulting on its massive debts, reinforcing the deep slump in China's real estate market and potentially impacting the country's financial sector and global markets.
Country Garden, China's largest private developer, has obtained approval from its creditors to extend payments for an onshore private bond, providing relief for the embattled company and the crisis-ridden property sector.
Country Garden Holdings, once a leading player in China's property industry, is facing a severe cash crunch that could have more extensive implications for the economy than the default of Evergrande Group, as its declining stock and bond values threaten to trigger broader damage to the real estate sector and consumer confidence.
Country Garden's deal with creditors for an extension on debt payments has provided temporary relief for the developer and China's struggling property sector, but the success of government stimulus measures in reviving demand and easing the sector's cash squeeze remains uncertain.
China's largest private property developer, Country Garden, has won approval from its creditors to extend repayment on six onshore bonds by three years, providing relief to the country's crisis-hit property sector.
Country Garden's $100 billion Forest City development in Malaysia, which aims to house 700,000 people, is facing scrutiny from creditors as the cash-strapped developer struggles to meet its debt liabilities and generate revenue from the project.
Embattled Chinese developer Country Garden is facing a deadline to pay $15 million in interest on an offshore bond, with concerns growing over its ability to meet its debt obligations amid a struggling property sector and weak property sales in China. If the payment is not made within the 30-day grace period, the principal will become due immediately and trigger cross-default terms on other credit. Some offshore creditors have already begun talks with law firms, indicating a potential debt restructuring.
Chinese property developer Country Garden has received bondholders' approval to extend repayments on one of its local notes.
China's Country Garden may announce a restructuring of its offshore debt soon, while concerns about a possible liquidation arise for China Evergrande Group as its debt plans face difficulties.
Chinese real estate developer Country Garden Holdings is unable to meet its offshore repayments, which may result in creditors demanding faster debt repayments or taking legal action, causing the company's shares to fall 1.19%.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/ZHR5QQZYU5JDXPKVWT3F2BLMTU.jpg)