Country Garden says founder, chairperson still at work in China

COUNTRY Garden’s founder and chairperson of the board are at work as usual, the debt-laden Chinese property developer said on social media on Thursday, denying online reports of the pair leaving the country.

Founder Yeung Kwok Keung quit Country Garden’s board in March and daughter Yang Huiyan became chairperson. Yeung remains a special adviser.

Country Garden on Wednesday was due to pay a US$15 million coupon payment on a bond due September 2025, but two bondholders told Reuters they were yet to receive it. Non-payment would put the developer at risk of default.

The developer has not commented on the payment. On Wednesday, it said it was unlikely to be able to meet most of its upcoming offshore debt payments.

Country Garden has almost US$11 billion of offshore bonds outstanding. A default could trigger one of China’s biggest corporate debt restructurings. REUTERS