China's Largest Homebuilder Country Garden Defaults on $500 Million Bond, Deepening Real Estate Crisis
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Country Garden, China's largest homebuilder, has defaulted on a $500 million bond payment, triggering payouts on credit default swaps (CDS).
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The default shows the deepening crisis in China's property sector as housing demand wanes due to an aging population.
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Country Garden hired restructuring advisers and will need to overhaul its $190 billion in liabilities.
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The company could follow the restructuring path of Sunac China rather than a messy collapse like Evergrande's.
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Sunac unveiled a $9 billion restructuring plan in March after reaching agreements with key bondholders.