Embattled Chinese property developer Country Garden said it has not made a due payment in the principal amount of HK$470 million, according to a filing to the Hong Kong Stock Exchange on Tuesday morning.
The company also expects that it will not be able to meet all of its offshore payment obligations when due or within the relevant grace periods and such non payment may lead to relevant creditors demanding acceleration of payment of the relevant indebtedness owed to them or pursuing enforcement action, showed the filing.
The group has received requisite consents from relevant bondholders for the extension of maturity of nine series of onshore corporate bonds with an aggregate outstanding principal amount of about 14.7 billion yuan, which provides it with the time and space to focus on the recovery of its business operations, it noted.
In addition, the company said that it has hired China International Capital Corporation Hong Kong Securities Ltd and Houlihan Lokey (China) Ltd as its joint financial advisors and Sidley Austin as its legal advisor, to evaluate the capital structure and liquidity of the Group and formulate a holistic solution, according to a filing to the Hong Kong Stock Exchange.
The company and its advisors will ensure fair and equitable treatment amongst all creditors and actively communicate with creditors to explore potential options when appropriate, it said.
The company intends to continue to cooperate and engage in dialogue with all creditors to reach a feasible solution as soon as practicable.
Country Garden wishes to pursue a holistic solution to fully address its current offshore debt risk, to enable it to restore its business operations and achieve long-term healthy development and, to the greatest extent, protect the rights and interests of all stakeholders including customers, employees and creditors, it said.
