China’s Country Garden Was Given a Second Chance to Make a Bond Payment. It Failed.

Chinese property giant Country Garden has missed a final deadline to pay interest on a dollar bond, capping a remarkable fall from grace for a company that was once considered among the safest developers in the country. 

The company hasn’t made a $15.4 million interest payment on an outstanding dollar bond, according to two investors who hold the bond. That could lead to a wave of cross-defaults on its other international debt. Country Garden had around $15.2 billion of international bonds and loans outstanding at the end of June, according to its public disclosures.