Country Garden warned of default on foreign debt, stock price fell more than 11% in 2 days (Reuters)
[Financial Channel/Comprehensive Report]As offshore bond defaults count down, Chinese real estate developer Country Garden (2007.HK) announced today that the group currently faces “significant” uncertainty in asset disposal, its cash position is under pressure, and it may not be able to meet maturity dates. It will fulfill all offshore payment obligations on time or within the relevant grace period. Today, the stock price is facing a battle to defend HK$0.8, and the stock price fell by more than 10% in 2 days.
Country Garden’s two coupons totaling US$66.8 million (approximately NT$2.15 billion) expired on Monday. The stock price opened lower and closed at HK$0.84, down 6.66%. The stock price opened flat today, and the stock price once reached HK$0.87. , up 3.57%. However, after Country Garden defaulted on its foreign debt, investors released selling orders, and the stock price plummeted, hitting the integer mark of HK$0.8. As of 11:03, the stock price was temporarily reported at HK$0.81, down 3.57%, the highest in two days. The decline reached 11.11%, and the decline so far this year is as high as 69.89%, approaching 70%.
Country Garden stated in a document submitted to the Hong Kong Stock Exchange today that the equity sales amount in September was approximately 6.17 billion yuan (approximately NT$27.209 billion). The growth rate has declined for six consecutive months, with an annual decrease of 80.7%, a decline from 2021. 86.5%.
The cumulative equity sales amount of the group from January to September this year was approximately 154.98 billion yuan (approximately NT$683.461 billion), with an annual decline of 43.9% and a decrease of 65.4% compared with the same period in 2021.
Country Garden pointed out that since the beginning of this year, the group’s sales have been under significant pressure, facing major uncertainties in asset disposals and sales, and its cash position has been significantly under pressure. It is expected that the group’s liquidity will continue to be tight in the short to medium term.
As of the announcement date, the company has not yet paid the due amount of debt principal amounting to HK$470 million (approximately NT$1.927 billion). The Company expects to be unable to fulfill all of its overseas debt repayment obligations as scheduled or within the relevant grace period, including the repayment obligations under the US dollar bonds issued by the Company.
Such non-payment may result in relevant creditors of the group demanding accelerated payment of related debts owed or taking enforcement action.
The company will actively promote overseas debt management measures and formulate overall solutions fairly and equitably to achieve a long-term and sustainable capital structure.
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2023-10-10 03:12:28
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