Country Garden reports huge losses, China’s economy worsens?
One of China’s biggest property companies, Country Garden, has become the new real estate giant to announce that it could default on its debts.
This came as the crisis-hit firm declared a record $6.7bn (£5.2bn) loss for the first six months of the year.
Country Garden stated in the statement that it was “deeply remorseful for the unsatisfactory performance.” The announcement raises worries regarding the post-pandemic bounceback of the planet’s second-largest economy.
Country Garden even announced it had missed interest charges on bonds due this month. Nevertheless, it added it was still within a 30-day grace time to settle the payments.
Also read: Balu Forge Industries shares soar 12%, here’s the reason
It is also reportedly aiming to raise a deadline for the repayment of another bond. The company alerted that it could default on its deficits “if the group’s financial performance continues to deteriorate”.
“The group might not be able to fulfil the financial covenants of these borrowings, which may result in default in these borrowings and cross-default in certain other borrowings,” Country Garden stated in a regulatory filing in Hong Kong.
Before this month, the firm warned it could report a loss of up to $7.6bn for the year’s first six months. The record loss was at the lowest end of 45bn yuan ($6.2bn; £4.9bn) to the 55bn yuan estimate issued by the firm.
