China’s housing crisis has engulfed the country’s private developers, producing record waves of defaults and leaving a shrinking group of survivors.
The debt pressure underscores the unabated payment risks among the sector’s survivors as an unprecedented cash crunch enters a fourth year. While authorities’ latest efforts to arrest a housing slump fueled a property stock rally Monday, concerns remain that industry giant Country Garden is heading toward default, an event that may further rattle Chinese markets.
Sitting atop the list of survivors and vulnerable to an imminent payment failure is Country Garden, as the clock is ticking for China’s former top developer by sales to pay a combined $22.5 million in two dollar note coupons within a grace period that ends September 5 to 6. Seazen and Agile have $104 million and $222 million of bond payments, both onshore and offshore, coming due through the end of this year, respectively.
Source: Loan Digest (loandigest.net)