There are two groups of bondholders seeking debt restructuring talks, with one of the main groups close to appointing Moelis or PJT as financial advisers, the sources said. This group holds the firm’s foreign bonds in the amount of about two billion dollars (46.7 billion CZK) and consists of international investors and fund managers, one of the sources said.
After China Evergrande Group, Country Garden has apparently become the next large Chinese real estate company to default on its foreign obligations. The company has a debt of 11 billion dollars (256.8 billion CZK) and another six billion dollars in foreign loans. Its failure would mark one of China’s largest corporate debt restructurings.
The company’s possible insolvency raises concerns about China’s economic recovery from the Covid-19 pandemic, as the real estate sector accounts for nearly one-third of China’s gross domestic product (GDP).
Country Garden itself has not yet commented on whether it has made the latest payment. It announced on Wednesday that it is unlikely to be able to meet most of its upcoming foreign debt payments.
On Thursday, the company wrote on its official WeChat account that its founder and his daughter, who is the chairman of the board, are at work as usual. According to Reuters, she denied reports on the network that the pair had left the country.
Chinese shares are at this year’s low despite signs of economic stabilization
2023-10-19 13:57:02
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