HONG KONG: Major Chinese property developer Country Garden said on Tuesday (Aug 8) it has not paid two dollar bond coupons due Aug 6 worth a total of US$22.5 million.
The bonds in question are notes due on February 2026 and August 2030, both with 30-day grace periods, investors said, citing prospectus.
Country Garden said its usable cash has continuously decreased, showing “periodic liquidity stress” due to deterioration in the sales and refinancing environment, and the impact from various fund regulations.
It added that it is improving capital arrangements to ensure the legal rights of creditors.
The home builder warned last week that it would post an unaudited net loss for six months ending June 30, compared with a net profit of 1,910 million yuan (US$267.31 million) a year earlier.
China’s property sector has seen a string of debt defaults by cash-squeezed developers over the past few years, with China Evergrande Group, the world’s most indebted property developer, at the centre of the crisis.