Country Garden Holdings Co. apologized after being embroiled in liquidity stress that has spooked investors already concerned about China’s property downturn.
(Bloomberg) — Country Garden Holdings Co. apologized after being embroiled in liquidity stress that has spooked investors already concerned about China’s property downturn.
The developer will “make sure it doesn’t lie flat” and will “think of every possible way to rescue itself” through sales, tapping into assets and enlisting support from shareholders, it said in a WeChat statement on Friday after bondholders said they have yet to receive coupon payments due earlier this week.
Once China’s largest developer by sales, Country Garden’s struggles underscore how a persistent housing market slump is weighing on some of the strongest private builders, and the economy. The Foshan-based developer saw its bonds and stock plunge this week on concern that it will be the next giant to default.
Read more on how Country Garden’s losses fan property fears
The company seeks more time to deliver unfinished projects and ease liquidity stress to protect the interest of customers, investors and partners, Chairman Yang Huiyan and President Mo Bin said in the WeChat statement.
Country Garden anticipates a net loss of 45 billion yuan to 55 billion yuan ($6.2 billion to $7.6 billion) in the first half.
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