Country Garden Holdings Co., once Chinas biggest real estate developer, is edging toward a default. The distressed builder suspended trading in nearly a dozen onshore bonds Monday, paving the way for debt negotiations and a possible restructuring. Investment bank CICC International Capital Corp. has been engaged to explore options for the company, including extending some soon-to-mature yuan notes.
With about $10 billion dollar bonds outstanding, foreign investors, of course, want to know what this will mean for their holdings, such as the recovery rate and timing of a debt workout.
First, the good. Country Garden is not China Evergrande Group. Thats a much better-run company. Its unlikely to have the kind of opaque web of off-bal…
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