Deal gives a breath of fresh air to Chinese Country Garden in crisis

China’s struggling real estate developer Country Garden has won approval from its creditors to extend the repayment of six bonds it issued in China by three years. China’s struggling real estate developer Country Garden has reached an agreement with its creditors to extend the repayment of six yuan-denominated debt instruments by three years. According to a Reuters report, Chinese creditors discussed extending the payments of eight yuan-denominated bonds worth 10.8 billion yuan ($1.5 billion) by three years on Monday. A vote on the repayment of the remaining two bonds was postponed. The company was able to make the payment on its dollar-denominated bonds at the last minute last week. The company, which has now avoided the risk of default, could still record losses of $7 billion in the first six months of the year. Bond investors had also priced the dollar-denominated bonds at levels reflecting defaults of 9 to 13 cents, seeing the company as too risky. Following the news of the payment extension, Country Garden shares erased their daily losses and rose as much as 9.7 percent.