Chinese real estate developer Country Garden Holdings has stated that it anticipates being unable to meet all of its offshore debt repayments, including those denominated in U.S. dollars.
The company recently missed a debt repayment of 470 million Hong Kong dollars ($60 million), which may result in creditors demanding faster debt repayment or taking legal action.
Country Garden’s shares fell 1.19%, contrasting with the broader Hang Seng index’s 2% rise.
In early September, the company narrowly avoided default by making $22.5 million in bond coupon payments, and its creditors agreed to extend repayments on six onshore bonds by three years.
Country Garden’s contracted sales for September were 6.17 billion yuan ($846 million), marking the sixth consecutive month of decline and an 80.7% drop from the previous year.
The company foresees ongoing uncertainty in its liquidity position and asset sales in the short and medium term, as there is no substantial improvement in property sales across the industry.
Debt issues have plagued several Chinese property giants, including Evergrande and Country Garden, undermining consumer confidence in the real estate sector.
Source-CNBC
