Country Garden faces fresh test for onshore bond extensions
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HONG KONG: Embattled developer Country Garden faces a new round of voting by creditors to extend several debt maturities on Monday (Sep 11), having avoided default at the last minute twice already this month to bring some respite to the crisis-hit Chinese property sector.
The voting, due to conclude by 10pm Hong Kong time, will have onshore creditors decide on approving a proposal by Country Garden to extend repayments of eight onshore bonds by three years.
The latest voting comes after the country's largest private developer on Sep 1 won approval from creditors to extend payments by three years for a 3.9 billion yuan (US$533 million) onshore private bond.
That voting was delayed by two times before Country Garden's proposal won support from 56.08 per cent of participating creditors. It also managed to avoid default in the offshore market, with a last-minute bond coupon payment last week.
