Country Garden dodges default by making last minute debt payments, state media reports (labcalindia)

Hong Kong

Country Garden, the embattled Chinese real estate firm, made late interest payments on two US dollar bonds shortly before the end of a 30-day grace period, avoiding an imminent debt default, according to multiple state media reports.

The China Securities Journal reported on Tuesday that the company had paid the overdue interest of $22.5 million on the bonds, citing people close to the company.

Country Garden hasn’t responded to a CNN request for comment.

That means the property giant has dodged a default on its debt, fueling optimism among some investors that the debt-laden company can address its liquidity crisis.

The two bonds, which were sold to overseas investors, matured on August 6 and the property giant had another 30 days to pay the coupon before it could be declared a defaulter.

This a developing story and will be updated.

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