Chinese developer Country Garden secures bond repayment delay amid liquidity crisis

Chinese developer, Country Garden, has successfully secured creditor approval to postpone a critical bond repayment deadline, narrowly dodging a potential default. This agreement provides temporary relief amidst a liquidity crisis that has significantly impacted the nation’s financial markets.

Country Garden gained enough support in a vote concluded yesterday to extend payments on the 3.9 billion yuan (18 billion baht) outstanding principal until 2026, as per filings made with the Shanghai Stock Exchange. The bond originally matured today, meaning the payment would have been due the subsequent business day, on Monday. The company also secured approval to add a 40-day grace period.

However, the challenges for Country Garden, previously the nation’s largest developer, are far from over as China’s broader property debt crisis enters its fourth year….