Some of Country Garden Holdings Co.’s bondholders are demanding full repayment of a local bond due early next month, after the embattled Chinese property developer proposed a three-year extension for the yuan-denominated note.
(Bloomberg) — Some of Country Garden Holdings Co.’s bondholders are demanding full repayment of a local bond due early next month, after the embattled Chinese property developer proposed a three-year extension for the yuan-denominated note.
The bondholders, who collectively hold 10.5% of the 5.65% note’s 3.9 billion yuan ($534 million) principal outstanding, made the request in a proposal outlined in a Country Garden filing to the Shanghai Stock Exchange’s private disclosure platform that was seen by Bloomberg News. The filing, dated Aug. 18, doesn’t reveal other details of the bondholders.
Country Garden also finalized details of its extension plan for the bond effectively due Sept. 4. in the same filing. Bloomberg News reported the initial details of the plan last week.
Country Garden didn’t immediately offer comment when reached by Bloomberg News.
The bondholders’ move brings about uncertainties over Country Garden’s proposal to use delayed repayment to avoid what would be its maiden bond default, as China’s former top developer struggles to survive an industry-wide cash crunch. The builder’s debt woes threaten even worse impact than defaulted peer China Evergrande Group given it has four times as many projects.
Country Garden plans to convene a bondholder meeting to vote on its own extension plan and the separate full repayment request between Aug. 23 and Aug. 25, according to the filing.
–With assistance from Emma Dong.
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