Country Garden Posts Record Loss, Warns of Possible Default
- China developer cites ‘material uncertainties’ in outlook
- Slump casts doubt on firm continuing as going concern
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Country Garden Holdings Co. warned that it may default on its debt and raised concerns about staying in business after the embattled Chinese developer posted a record first-half loss of almost $7 billion.
The Foshan-based company said that if its financial performance continues to deteriorate, the group might not be able to meet its debt obligations, “which may result in default,” according to a filing Wednesday. It also cited “material uncertainties” that may cast “significant doubt on the group’s ability to continue as a going concern.”