Country Garden Seeks 40-Day Grace Period to Avert Default

Country Garden Holdings Co. is seeking a 40-day grace period for a maturing 3.9 billion yuan ($540.8 million) onshore bond as the distressed property developer pushes to secure creditor support for stretching out repayment by three years.

Country Garden proposed an Aug. 31 meeting for bondholders to vote on its request for extra time to repay the bond, known as 16 Bi Yuan 05, according to an exchange filing Tuesday. The note, a nonpublic bond issued in 2016, is set to mature next week.