SHANGHAI – Country Garden Holdings warned that it may default on its debt and raised concerns about staying in business after the embattled Chinese developer posted a record first-half loss of 48.9 billion yuan .
Country Garden has been talking to its onshore creditors to extend a 3.9 billion yuan private bond due on Saturday. Country Garden’s bonds are already trading at severely distressed levels, with a US$1 billion note maturing in January trading at less than 13 cents on the dollar. It is now a penny stock after shares plunged 67 per cent in 2023 in Hong Kong.
Even though revenue rose 39 per cent for the period, it posted a massive loss due to a decline in property sales volume and prices, and rising impairments for properties under development and on financial and contract assets, Country Garden said in the filing. “The profundity and persistence of the market’s downtrend still caught the company off guard,” the company said. It added it will consider adopting various debt management measures to resolve the “phased liquidity pressure” to maintain stable operations and preserve value for investors.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: straits_times - 🏆 5. / 69 Read more »