Country Garden Gets Approval to Extend Yuan Bond Repayment
- Distressed Chinese builder also won vote to add grace period
- Separate grace period ends next week on dollar bond interest
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Chinese developer Country Garden Holdings Co. won approval from creditors to extend a maturing yuan bond, helping avoid a first-time default and bringing some respite amid a liquidity crisis that’s shaken the nation’s financial markets.
The company received sufficient support in a vote that ended late Friday to stretch payments on the 3.9 billion yuan ($537 million) of outstanding principal into 2026, according to filings to the Shanghai Stock Exchange’s private disclosure platform that were seen by Bloomberg News. The security has a Sept. 2 maturity, which means it effectively falls due Sept. 4, the next business day.