Country Garden Creditors Seek CDS Ruling on Failure-to-Pay Event
- CDDC asked if credit default swap contracts triggered
- Chinese builders have faced more such questions amid crisis
Signage at a Country Garden Holdings development in Heyuan, China.
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Will a missed dollar bond interest payment by distressed Chinese developer Country Garden Holdings Co. trigger credit default swaps tied to its debt?
That question has been posed to the Credit Derivatives Determinations Committees, according to a notice posted Monday. The industry bodies deliberate on such queries involving potential payout on CDS, which can be used by creditors to insure against default by borrowers.