UPDATE 4-Country Garden on brink of default as payment deadline nears
Country Garden's entire offshore debt will be deemed to be in default if China's largest private property developer fails to make a $15 million coupon payment on Tuesday, the end of a 30-day grace period. With nearly $11 billion of offshore bonds and $6 billion of offshore loans, a default by Country Garden would set the stage for one of China's biggest corporate debt restructurings, as the country's property sector crisis deepens and drags on economic growth. "I think it’s a really high-profile and visceral reminder of just how bad things are for the developers, but the private-sector developers in particular," said Chris Beddor, deputy director of China Research at Gavekal Dragonomics.
