Country Garden expresses concern about its financial situation and states that company may not be able to pay back its loan

 Country Garden expresses concern about its financial situation and states that company may not be able to pay back its loan

60 million dollars' worth of debt, 470 million Hong Kong dollars, is not repaid by Country Garden.

The firm also anticipates short- and long-term instability in its asset sales and cash situation.

Country Garden Holdings, a Chinese real estate developer, said that it anticipates not being able to complete all of its offshore repayments, including those made in U.S. dollar notes.

As of Tuesday, the corporation has not paid a loan repayment of 470 million Hong Kong dollars ($60 million).

Country Garden issued a warning that this can result in creditors requesting quicker debt repayment or conducting enforcement action. Comparatively to the larger Hang Seng index, which increased roughly 2%, the company's shares decreased by 1.19%.

Early in September, the business barely escaped default after managing to make bond coupon payments totaling $22.5 million and having its creditors approve a three-year repayment extension for six onshore bonds.

In addition, Country Garden reported contractual sales of 6.17 billion yuan ($846 million) for September, a loss of 80.7% from the same month last year and the sixth consecutive month of decline.

Given the absence of a significant, sector-wide improvement in property sales, the business anticipates short- and medium-term uncertainties in its cash situation and asset sales.

Chinese real estate behemoths like Evergrande and Country Garden have struggled with debt, which has harmed customer trust in the industry.