According to Bloomberg, Chinese real estate developer Country Garden has defaulted after failing to pay the interest on a note by the end of the 30-day grace period, which ended last week.
Not paying debt within the grace period constitutes “an event of default”, Bloomberg reports.
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Last month, the company warned of its inability to pay off debt. It was always likely that the company might default, joining a growing list of indebted Chinese developers.
Based on the latest disclosure from the company, Country Garden had approximately $15 billion in debt maturing by June 2024. The company’s overall liabilities amounted to around 1.36 trillion yuan (equivalent to $190 billion).