China: Country Garden survives one debt deadline with another just days away

Source: CNN Business

“Investors in embattled Chinese property giant Country Garden are breathing a collective sigh of relief Monday, after it reportedly won approval from local creditors to delay repayments on a maturing bond, averting the threat of a default — at least for a few days. It was the first debt extension the firm has secured since its liquidity crisis became public last month and offers a temporary reprieve for China’s real estate industry, which has been gripped by fears that Country Garden’s debt woes would spill over to its peers and ripple through the economy. … But the company is not off the hook. It failed to pay the interest owed on two dollar bonds last month and a 30-day grace period on those missing payments expires this week. A failure to pay those creditors could still lead to a default.” (09/04/23)