Energy 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
Making aviation fuel from biomass

Chevron, partners develop a transportation fuel using animal waste as a feedstock

Illinois research leading to cleaner propane production method

Transforming flies into degradable plastics

TRADE WARS
New insight for stabilizing halide perovskite via thiocyanate substitution

Low cost, high efficiency, multiple colors at the same time!

Lithuanian invention at the forefront of solar technology breakthrough

Solar powered irrigation: a game-changer for small-scale farms in sub-Saharan Africa

TRADE WARS
UK eases effective ban on onshore wind in England

China, US lift wind turbine sales: study

Interior Department holds offshore wind energy auction for Gulf

DLR opens wind energy research farm in Krummendeich

TRADE WARS
African leaders to push for finance at climate summit

Controversial plan to develop Toronto green area under review

Billions pledged for green development at Africa climate talks

Free electricity boon for Norway's two biggest cities

TRADE WARS
Alumnus' thermal battery helps industry eliminate fossil fuels

Jeep owner Stellantis invests $100 mn in US lithium

DoE announces $112 million for research on computational projects in fusion energy sciences

US lab repeats nuclear fusion feat, with higher yield

TRADE WARS
Air pollution greatest global threat to human health, says benchmark study

Indonesia sanctions 11 industrial firms over Jakarta pollution spikes

Kids entitled to clean, healthy environment: UN committee

Russian teen eco-activists fight for future as risks mount

TRADE WARS
UAE announces $4.5 bn in Africa clean energy investments

UAE oil giant announces new carbon capture project

France seeking deadline for global oil, coal phaseout

UAE's ADNOC Gas signs $450-550 mn Chinese supply deal

TRADE WARS
NASA, Partners study ancient life in Australia to inform Mars search

Martian Tapas With a View: Sols 3926-3927

Delight at Dream Lake

Approaching the Ridgetop - "Bermuda Triangle" Ahead: Sols 3923-3925

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2026 - 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.