Country Garden Delays Yuan Bondholder Voting Deadline
Country Garden, one of China’s largest real estate developers, has once again delayed the deadline for bondholders to vote on a proposal to issue yuan-denominated bonds. The company has been trying to raise funds to pay off its debt and finance its expansion plans.
Background of Country Garden
Country Garden was founded in 1992 by Yeung Kwok Keung, a Chinese entrepreneur. It is one of the largest real estate developers in China and has been expanding rapidly in recent years. The company has been involved in a number of high-profile projects, including the development of the Guangzhou-Shenzhen-Hong Kong Express Rail Link.
Country Garden’s Debt Situation
Country Garden has been struggling with its debt situation in recent years. The company has been trying to raise funds to pay off its debt and finance its expansion plans. To this end, it has been attempting to issue yuan-denominated bonds.
Delayed Bondholder Voting Deadline
Country Garden has been trying to issue yuan-denominated bonds since early 2020. However, the company has been unable to secure the necessary approval from bondholders. As a result, the company has been forced to delay the deadline for bondholders to vote on the proposal.
The latest delay was announced on August 31, 2023. The company said that it had extended the deadline for bondholders to vote on the proposal until September 30, 2023. This is the third time that the company has delayed the deadline.
Reasons for Delay
The company has not provided any explanation for the delay. However, it is likely that the company is having difficulty securing the necessary approval from bondholders. Bondholders may be reluctant to approve the proposal due to concerns about the company’s debt situation and its ability to repay the bonds.
Impact of Delay
The delay in the bondholder voting deadline has had a negative impact on Country Garden’s stock price. The company’s shares have fallen by more than 10% since the announcement of the delay.
Outlook
It remains to be seen whether Country Garden will be able to secure the necessary approval from bondholders. If the company is unable to do so, it may be forced to seek alternative sources of financing. This could have a negative impact on the company’s financial position and its ability to finance its expansion plans.