Chinese developer Country Garden Holdings has been deemed in default on a U.S. dollar bond for the first time, Bloomberg News reported on Wednesday, citing a notice.
Country Garden’s failure to pay interest on the note within a grace period that ended last week “constitutes an event of default”, Bloomberg reported citing the notice to holders from a trustee.
Country Garden did not immediately reply to a query by Reuters on Wednesday.
A grace period ended last Wednesday as Country Garden was due to settle a $15 million coupon payment on a bond due in September 2025, but two bondholders told Reuters they did not receive the money as that deadline expired.
Non-payment would put the developer at risk of default on its nearly $11 billion of outstanding offshore bonds and could trigger one of China’s biggest corporate debt restructurings.
A group of investors holding about $2 billion of Country Garden’s offshore bonds has hired PJT Partners as financial adviser to lead discussions with Country Garden for debt restructuring plans, Reuters reported previously.