In a stock exchange announcement published on the website of the Hong Kong stock exchange, the company writes that it “expects that it will not be able to meet all of its offshore payment obligations when they fall due or within the relevant deadlines”.
The company also announces that it has not been able to pay a debt of 60 million dollars, corresponding to almost 660 million kroner, which is due for payment.
Country Garden is asking lenders for patience while the company “evaluates the current challenges”
Last year, Country Garden was China’s largest property developer in terms of the number of sales. Recent liquidity problems have raised fears that the company will go bankrupt, which could have far-reaching negative consequences for China’s already strained economy.