Leading Chinese property developer Country Garden Holdings Co. has recently faced a major setback after defaulting on a dollar bond payment. According to a notice from trustee Citicorp International Ltd., the missed payment has been deemed “an event of default.” Originally due on September 17, the payment deadline was extended by a 30-day grace period, which the company failed to meet. Citigroup, the parent company of Citicorp, declined to comment on the matter, while Country Garden remained silent in response to requests for comment.
Offshore Payment Obligations Present Challenges
As reported last week, a Country Garden representative revealed that the developer is currently unable to fulfill all of its offshore payment obligations in a timely manner. This unfortunate turn of events raises concerns about the financial stability of the company and its ability to meet its financial commitments.
Market Reactions
Despite the distressing news, the Hang Seng Index (HSI) managed to rise by 1.2% on Tuesday, indicating some resilience in the market. Moreover, China’s CSI 300 Index saw a moderate increase of 0.6%, suggesting that investors remain cautiously optimistic about the overall market conditions.
It remains to be seen how Country Garden will navigate this challenging situation and address its financial obligations moving forward.
