Country Garden, the embattled Chinese real estate firm, made late interest payments on two US dollar bonds shortly before the end of a 30-day grace period, avoiding an imminent debt default, according to multiple state media reports.
The China Securities Journal reported on Tuesday that the company had paid the overdue interest of $22.5 million on the bonds, citing people close to the company.
Country Garden hasn’t responded to a CNN request for comment.
That means the property giant has dodged a default on its debt, fueling optimism among some investors that the debt-laden company can address its liquidity crisis.
The two bonds, which were sold to overseas investors, matured on August 6 and the property giant had another 30 days to pay the coupon before it could be declared a defaulter.
This a developing story and will be updated.
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