2023-10-10 02:07:25
“Such failure to make such payments may result in the group’s relevant creditors requiring acceleration of payment of the debt owed to them or taking enforcement action,” Country Garden adds.
The group also specifies that it has not been able to repay a debt maturity of 470 million Hong Kong dollars (56.7 million euros). It asks for “patience from creditors” as it seeks to “assess the current difficulties.”
A real estate crisis in China
The developer, who has long been deemed financially solid, has been caught up in recent months by the real estate crisis in China, which now threatens the survival of many of its competitors. He is trying to avoid a payment default whose consequences would be catastrophic for the Chinese real estate sector, already burned by the health crisis and the economic slowdown of the Asian giant.
Read more: Will China’s real estate woes contaminate the world?
Country Garden had a considerable debt estimated at 1,430 billion yuan (180 billion euros) at the end of 2022.
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