Troubled Chinese property developer Country Garden Holdings Co.
has been declared in default on a dollar bond, missing a $15.4 million interest payment that was due following the expiration of a grace period, Bloomberg reported Tuesday. The report cited a notice to holders of trustee Citicorp International Ltd. that said the missed payment constituted “an event of default.” The payment was originally due Sept. 17, then a 30-day grace period was given, which the developer missed. Citicorp’s parent Citigroup declined to comment to Bloomberg, while Country Garden didn’t respond to a request for comment.
A Country Garden official told Bloomberg last week that the developer would not be able to make all of its offshore payment obligations in a timely manner. The Hang Seng
rose 0.6% and China’s CSI 300
rose 0.5% on Tuesday, paring an initial flurry higher on hopes for stimulus spending after Xi Jinping was reported to have visited the country’s central bank.