Country Garden Is Raising Risks by Repeatedly Delaying Bond Vote
- Distressed builder delayed voting for third time on yuan note
- If vote fails, firm must repay about $67.6 million by Oct. 21
WATCH: Country Garden again delayed a deadline for creditors to vote on its request to extend payment on an onshore bond. Kevin Kingsbury reports.
Source: BloombergChinese developer Country Garden Holdings Co. left investors grasping for more information after it again delayed a deadline for voting on its request to extend a bond, underscoring a broader lack of transparency amid the nation’s property debt crisis.
Voting was extended to 10 p.m. Beijing time Monday from Thursday, according to a noteholder briefed by one of the underwriting banks. That’s the the third time that Country Garden has delayed the deadline. The bond has 492 million yuan ($67.6 million) of outstanding principal due Oct. 21, its largest near-term maturity, unless holders agree to stretch repayment by three years.