China’s Country Garden secures deal to delay bond payments

Struggling Chinese property developer Country Garden has secured an extension on payments for three onshore bonds, according to a statement released on Wednesday, reported by Reuters.

This move provides the company with crucial breathing room to raise funds and address its ongoing debt issues. The company received approval from bondholders to postpone the initial payments and interest on the three yuan-denominated bonds.

While Country Garden did not disclose the total value involved, the statement confirmed these payments were originally due in March and June of this year.

This extension comes after Country Garden defaulted on its $11 billion in offshore bonds. The company is currently working on a restructuring plan to address this offshore debt.

Country Garden is grappling with the fallout from the property sector‘s debt crisis that began in mid-2021. This crisis has caused numerous companies to default on loans, leaving unfinished construction projects in its wake.