In Depth: Country Garden’s Troubles Mount as It Misses Offshore Bond Interest Payment

By Wang Jing, Wang Juanjuan and Zhang Yukun

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Country Garden and two of its major subsidiaries will need to repay more than 18.5 billion yuan in maturing onshore bonds by the end of the year

As China’s property crisis deepens, fears are growing that the next casualty could be Country Garden Holdings Co. Ltd., one of the few private property developers to have so far managed to avoid defaulting on its bonds.

Chaired by Yang Huiyan, formerly China’s richest woman, the Guangdong-based company failed to make interest payments totaling $22.5 million on two offshore U.S. dollar bonds due Monday, several Hong Kong-based investors told Caixin. One said the developer now has a grace period of 30 days to make the payments and if it fails to do so within that time, it will be in breach of the terms of the bonds.