Country Garden Dollar Bond Coupon Due as Yuan Debt Vote to End

Distressed Chinese developer Country Garden Holdings Co. faces two more tests Monday: an initial deadline to pay dollar bond interest and the end of creditor voting on its request to extend payment on a yuan note, Bloomberg News reported. Holders of that local bond due Oct. 21 have until 10 p.m. Beijing time Monday to vote on the proposal to stretch payment by three years. If they reject it, Country Garden would need to pay the 492 million yuan ($67.6 million) of outstanding principal next month, its largest near-term maturity just as it’s struggled to make smaller payments. There’s also $15.4 million of interest effectively due Monday on a dollar security that matures in 2025, according to data compiled by Bloomberg. It has a 30-day grace period. Memories are fresh of a similar combined $22.5 million interest payment that Country Garden failed to make by an effective Aug. 7 deadline, raising risks of its first default. That stumble shocked Chinese financial markets before the firm eventually honored the obligation at the last minute of grace periods earlier this month. Read more.