Chinese developer Country Garden Holdings Co. offered the strongest indication yet that it’s set for a maiden default and debt restructuring, in the latest sign that authorities’ rescue efforts are not enough to stop the nation’s property crisis from worsening.
China’s former top builder warned in a stock exchange filing Tuesday that it will not be able to meet all of its future offshore payment obligations, including dollar bonds.
Country Garden also said Tuesday it hired advisers, a step that distressed companies often take as they gear up to seek a broader debt restructuring.
With its peer China Evergrande Group facing a growing risk of liquidation amid uncertainty over its own restructuring, the property developer’s mounting troubles underscore the need for Beijing to take tougher measures to support a key growth engine amid a continued slump in home sales.