For the first time ever, bondholders officially declared that Country Garden had defaulted after failure to pay interest on a dollar-denominated note.
Troubled Chinese developer Country Garden has defaulted on a dollar bond, according to a «Bloomberg» report citing a notice to debt holders from trustee Citicorp International. No payment was made for $15.4 million of interest after missing the initial September 17 deadline as well as the 30-day grace period afterward which «constitutes an event of default».
Country Garden now faces the prospects of restructuring. Although it has fallen in ranks in recent years, it remains one of China’s largest builders by contracted sales, with thousands of housing projects and 70,000 employees.
