China’s Country Garden faces payment deadline after twice dodging default

[Hamartia Antidote]

China’s Country Garden faces payment deadline after twice dodging default

Embattled developer faces deadline to pay $15m as China’s property sector struggles with debt crisis.

www.aljazeera.com

Country Garden is among a number of heavily indebted developers that have raised fears about the health of China's property sector [File: Aly Song/Reuters]

Embattled Chinese property developer Country Garden faces yet another liquidity test with a deadline to pay $15m in interest linked to an offshore bond after having dodged default at the last minute twice this month.

The country’s top private developer, whose financial woes have worsened the property sector outlook and prompted Beijing to unveil a raft of support measures, will have a 30-day grace period after Monday’s deadline to pay the coupon before it would be considered in default.

If Country Garden fails to pay the $15m before the grace period ends in mid-October, the principal will become due immediately and any failure to service the bond will trigger cross-default terms on other credit, said Sandra Chow, co-head of Asia-Pacific research at CreditSights.

“It’s going to be really hard” for Country Garden to meet its debt obligations due to its tumbling cash levels at a time when property sales in the world’s second-largest economy remain very weak, Chow said.

A Country Garden spokesperson did not immediately respond to a request for comment from the Reuters news agency on Monday about its latest debt repayment obligation.

Country Garden last month warned of default risks if its financial performance continues to deteriorate. It has 108.7 billion yuan ($14.9bn) of debt due within 12 months but cash of about 101 billion yuan ($13.9bn) as of June.

It avoided default by winning approval from its creditors to extend payments for an onshore private bond in a major relief for the embattled Chinese developer as well as the crisis-hit property sector.

The developer in August missed coupon payments worth $22.5m tied to two dollar bonds but managed to wire funds before a grace period ended this month, dodging a default.

Last week, onshore bondholders agreed to extend repayments of seven other Country Garden bonds by three years.

 

[epebble]

Country Garden last month warned of default risks if its financial performance continues to deteriorate. It has 108.7 billion yuan ($14.9bn) of debt due within 12 months but cash of about 101 billion yuan ($13.9bn) as of June.

Somehow that doesn't sound serious. Also, $15m is like the budget for office coffee for a company with $15 Billion cash. They can probably pay that by cancelling a purchase order of paper clips.

 

[StraightEdge]

They have already set plans for debt restructuring and looks like the stake holders have approved that.
You need to get Chinese news from the local media, not International press. They barely have any contact and information inside China.

房企债务处置传利好，碧桂园、远洋债务成功展期_中华网

融创境外债重组方案也获得高票通过。

3g.china.com

 

[Hamartia Antidote]

They have already set plans for debt restructuring and looks like the stake holders have approved that.
You need to get Chinese news from the local media, not International press. They barely have any contact and information inside China.

房企债务处置传利好，碧桂园、远洋债务成功展期_中华网

融创境外债重组方案也获得高票通过。

3g.china.com

Interesting article you linked..didn't realize you could read Chinese..I'm sure PDF would be shocked considering your flags.

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文|关山

近期,多家房企债务重组或展期的利好消息。

截至9月19日，碧桂园（02007.HK）9只境内债已全部成功展期。9月18日，融创中国（01918.HK）也公告披露，其境外债重组方案获得高票通过，债权人数通过率为99.75%，债务总额通过率为98.3%。9月15日，远洋集团（03377.HK）公告称，将对境外债务进行全面重组，并表示当前公司没有出现任何公开市场违约，境内公司债、境外美元债票息均展期成功，将按期兑付展期后的境内公司债款项。

“这说明在债务问题处置方面，当前各房企取得了积极的进展和成绩，备受鼓舞。”易居研究院研究总监严跃进表示。

当前债务处置的工作呈现出一个重要特点，即表现为处置的效率明显提高、投资者对于处置方案的认可程度明显提高、处置的成果具有非常务实导向。严跃进认为，这和各类债务问题的特点有关系，其实都属于老问题。同时，各地和房企在债务处置方面经验更加成熟、手段更加丰富。

目前一个重要的推动力还在于房地产市场的企稳复苏态势。

根据诸葛数据研究中心监测数据显示，2023年第38周（9.11-9.17）监测重点城市新房成交环比上升12.64%，二手住宅成交环比上升11.48%。分城市来看，佛山、杭州、苏州新房涨幅领先；超8成城市二手房成交上涨，其中，佛山、北京、厦门涨势居前。

严跃进认为，在总体企稳复苏态势下，房企经营状况持续改善，同时投资者的预期也会改善，这都有助于债务问题的更好解决。而各房企处置此类债务，为后续企业发展创造了一个更宽松和友好的环境，也在很大程度上有助于促进企业后续专注经营，同时为债务问题的彻底解决提供更扎实基础

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Bookmarked
Any other surprises?

 

[StraightEdge]

Interesting article you linked..didn't realize you could read Chinese..I'm sure PDF would be shocked considering your flags.

文|关山

近期,多家房企债务重组或展期的利好消息。

截至9月19日，碧桂园（02007.HK）9只境内债已全部成功展期。9月18日，融创中国（01918.HK）也公告披露，其境外债重组方案获得高票通过，债权人数通过率为99.75%，债务总额通过率为98.3%。9月15日，远洋集团（03377.HK）公告称，将对境外债务进行全面重组，并表示当前公司没有出现任何公开市场违约，境内公司债、境外美元债票息均展期成功，将按期兑付展期后的境内公司债款项。

“这说明在债务问题处置方面，当前各房企取得了积极的进展和成绩，备受鼓舞。”易居研究院研究总监严跃进表示。

当前债务处置的工作呈现出一个重要特点，即表现为处置的效率明显提高、投资者对于处置方案的认可程度明显提高、处置的成果具有非常务实导向。严跃进认为，这和各类债务问题的特点有关系，其实都属于老问题。同时，各地和房企在债务处置方面经验更加成熟、手段更加丰富。

目前一个重要的推动力还在于房地产市场的企稳复苏态势。

根据诸葛数据研究中心监测数据显示，2023年第38周（9.11-9.17）监测重点城市新房成交环比上升12.64%，二手住宅成交环比上升11.48%。分城市来看，佛山、杭州、苏州新房涨幅领先；超8成城市二手房成交上涨，其中，佛山、北京、厦门涨势居前。

严跃进认为，在总体企稳复苏态势下，房企经营状况持续改善，同时投资者的预期也会改善，这都有助于债务问题的更好解决。而各房企处置此类债务，为后续企业发展创造了一个更宽松和友好的环境，也在很大程度上有助于促进企业后续专注经营，同时为债务问题的彻底解决提供更扎实基础

You don't need to know Chinese, you just need to know the right people or right sources. I am sure you can manage that if you wanted to.

PS., I don't need/want to hide the fact that I got some decent sources.

 

[Hamartia Antidote]

You don't need to know Chinese, you just need to know the right people or right sources.

Uh-huh...so are you now denying you can read Chinese...

Indian eh?