Chinese developer Country Garden misses payment on dollar bond, say creditors

The Financial Times: Chinese developer Country Garden has failed to make the coupon payment on a dollar bond, as reported by creditors. This development marks another setback for China’s troubled property sector. The bondholders did not receive the interest payment due for a $500 million Country Garden bond that was set to mature in September 2025. The company was supposed to make a $15.4 million coupon repayment this week. It’s worth noting that Country Garden has been struggling to avoid default for some time, amid China’s property market woes, which have been exacerbated by the Evergrande crisis. Despite previously being seen as more financially stable, the company’s sales have declined significantly, with its shares falling approximately 70% this year, and its bonds are trading at just 5 cents on the dollar. This situation underscores the challenges facing China’s property developers as they grapple with debt and market pressures.

The entire article can be read at the link https://www.ft.com/content/17c15875-66fe-487c-bf00-75d5ee6b79e2