Country Garden Leaves Bondholders in Dark Holding Unpaid Interest Bag

(Bloomberg) — Distressed Chinese developer Country Garden Holdings Co. passed an initial deadline to pay dollar bond interest with holders yet to receive the money, keeping the threat of a first default looming.

The builder, which has become a symbol of China’s broader property debt crisis, was supposed to pay $15.4 million of interest on the note by Monday. Two holders said they hadn’t been paid as of 3 p.m. Hong Kong time Tuesday. Country Garden didn’t comment when reached. There’s a 30-day grace period before a default can be declared.