Country Garden Signals Default as China Property Woes Deepen
- Firm says it expects it will not meet all offshore payments
- Builder is at center of China’s worsening property debt crisis
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Chinese developer Country Garden Holdings Co. offered the strongest indication yet that it’s set for a maiden default and debt restructuring, in the latest sign that authorities’ rescue efforts are far from enough to stop the nation’s property crisis from worsening.
China’s former top builder warned in a stock exchange filing Tuesday that it will not be able to meet all of its future offshore payment obligations, including dollar bonds. Such non-payment may lead to relevant creditors demanding acceleration of payment or pursuing enforcement action, it added.