Some of Country Garden’s (COGARD) offshore bondholders are said to be in talks with law firm Ashurst, to consider legal options if the company does not meet its debt repayment obligations or defaults, as per sources. The company has been witnessing deteriorating financial performance and facing a liquidity crisis amid the property sector collapse. Last month, it warned of major uncertainties over meeting redemptions of its bonds and managed to pay coupons on two of its dollar bonds in the last minute. Yesterday, the company won approval to extend repayment on local bonds with another deadline approaching for votes by bondholders to extend repayment of one of its RMB 492mn ($67.6mn) local bond. While COGARD has not defaulted yet, the move to seek legal options typically is seen as an attempt to identify debt restructuring options.
COGARD bonds are trading at deeply distressed levels of ~9-11cents to the dollar
BondbloX is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.