Country Garden seeks extension on 9 bonds amid plunging home sales, financial woes
The Foshan-based developer said that it plans to postpone for six months the coupon and principal instalment payments on nine notes due this month
Cash-strapped Country Garden Holdings is seeking an extension on nine onshore bond payments, adding to the mainland Chinese developer’s woes amid plunging home sales.
The Foshan-based developer told bondholders in a statement on Wednesday that it plans to postpone for six months the coupon and principal instalment payments on nine notes that are due on different dates this month to six months later.
The company said it has not yet raised sufficient funds to cover the principal and interest of the bonds because of plunging home sales and restrictions on fund allocations.
“The sales performance is still under pressure, affected by weak confidence and demand,” the company said in a statement to the Post. “At present, problems on sales and regulations persist, and [there] remains uncertainty on the fundraising in the short-term.”
01:28
Malaysia’s China-backed ghost town, Forest City, becomes set for Netflix show
Country Garden’s total contracted sales for the first eight months of this year plummeted 78 per cent from a year earlier to 32.8 billion yuan (US$4.6 billion), according to its filings to the Hong Kong stock exchange.
