Country Garden collapsed on the Hong Kong Stock Exchange after warning it might not be able to meet all overseas obligations on schedule, opening up the possibility of its first default: the securities of China’s main private property developer, saddled with a nearly $200 billion debt. Debt fell to intraday lows and was traded at HK$0.81, down 3.57%.
Country Garden, China’s largest private real estate developer, which is saddled with debt of about $200 billion, warned that it may not be able to meet its overseas obligations on schedule as part of efforts to avoid a default. In a filing to the Hong Kong Stock Exchange, the company said it “expects that it will not be able to meet all external payment obligations as they fall due or during the relevant grace periods.” The Country Garden memo, which notes that the group is headed toward its first default due to various deadlines on the calendar, specified that missed payments include, “but are not limited to, those relating to US dollar bonds issued by the Company. Failure to pay may trigger senior creditors The Group may request acceleration of payment of the relevant debts owed to them or pursue implementation procedures.”
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