Earth Science News
TRADE WARS
China's Country Garden narrowly avoids default: Bloomberg
China's Country Garden narrowly avoids default: Bloomberg
by AFP Staff Writers
Beijing (AFP) Sept 5, 2023

Struggling Chinese developer Country Garden has made multi-million-dollar interest payments on two outstanding loans, reports said Tuesday, narrowly avoiding what would have been its first default.

The firm in August said it was unable to make the payments, worth $22.5 million, and was given a 30-day grace period.

That grace period was due to end either Tuesday or Wednesday, but the company paid the interest, Bloomberg News reported citing sources.

Country Garden told AFP it had no comment on the repayment, which was also reported by Chinese media.

One of China's biggest builders, Country Garden had racked up debts estimated at 1.43 trillion yuan ($196 billion) by the end of 2022, and last week reported a 48.9 billion yuan loss for the first six months of the year.

On Saturday the firm reportedly won approval from creditors to extend a deadline for a key bond repayment worth 3.9 billion yuan to give it time to recover financially.

Had that not been repaid, the company would have faced the prospect of becoming the biggest Chinese real estate firm to default since rival Evergrande in 2021.

The company is still far from in the clear, however, with more loan repayments due in the coming weeks.

Country Garden's cash flow problems have ignited fears that it could collapse with consequences for China's economy, which is already suffering from record-high youth unemployment, flagging consumption and a broader crisis in the real estate sector.

Moody's further downgraded its credit ratings last week by three notches from Caa1 to Ca, indicating obligations that are "highly speculative and are likely in, or very near, default".

The move was an outcome of the firm's "tight liquidity and heightened default risk, as well as the likely weak recovery prospects for the company's bondholders", the ratings agency said.

The company is estimated to "not have sufficient internal cash sources to address its upcoming offshore bond maturity", according to Moody's.

sbr-oho/je/dan

Country Garden

China Evergrande Group

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Stocks down as traders await more China economic support measures
Hong Kong (AFP) Sept 5, 2023
Equities fell Tuesday, with traders unable to build on the previous day's rally as they await fresh measures out of China to stimulate the economy and support the creaking property market. Investors are also keeping tabs on massively indebted developer Country Garden, which is approaching the end of its grace period on interest payments for dollar-denominated bonds, with failure to pay putting it at risk of default. A series of announcements out of Beijing recently has helped lighten the mood on ... read more

TRADE WARS
Fukushima wastewater release spawns misinformation

First phase of Fukushima water release to end Monday

Go with the flow -- or flee: Burners split over mud tactics

In Florida, residents grapple with Hurricane Idalia's toll

TRADE WARS
From art squat to Berlin gentrification lightning rod

US envoy feasts on Fukushima fish, slams China water 'dumps'

Japan PM eats 'safe and delicious' Fukushima fish

Northrop Grumman delivers mini laser to US Government

TRADE WARS
Scientists Predict 10 pct Dryland Expansion Globally by 2100

Fish stocks survive ocean heatwaves: study

Past abrupt changes in North Atlantic Overturning have impacted the climate system across the globe

Historic red tide event of 2020 fueled by plankton super swimmers

TRADE WARS
Study quantifies link between greenhouse gases, polar bear survival

Tides may be responsible for much of under-ice melting in an Antarctica ice shelf

Loss of Antarctic sea ice causes catastrophic breeding failure for Emperor Penguins

Scientists voyage to Greenland's melting sanctuary

TRADE WARS
Acai berry craze: boon or threat for the Amazon?

Squeezed out: Bulgaria lavender oil makers fear EU laws

'Animals are thirsty': Dust and bones on Turkey's shrinking lake

Heat stress could threaten health of one billion cows

TRADE WARS
Three dead, three missing as torrential rains lash Spain

Freak flooding in Algeria kills eight

Storm Haikui heads to China after double landfall in Taiwan

Super Typhoon Saola sweeps towards southern China cities

TRADE WARS
At least 25 civilians killed in 48 hours in Sudan: activists, medic

African children 'least able to cope' with climate risks: UN

Statement read by Gabon officer announcing 'end of regime'

Army officers say toppled Gabon govt; China calls for Bongo safety to be guaranteed

TRADE WARS
New ancient ape from Turkiye challenges the story of human origins

ALS patient pioneering brain-computer connection

The race to link our brains to computers is hotting up

Just 5000 steps can save your life

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.