Chinese property developer Evergrande defaulted in 2021 and recently filed for bankruptcy protection in the United States.
The big question now is what will happen with Country Garden, another of China's largest property developers.
An effort to push off some of those payments for another three years was set to be voted on by bondholders last week but at the last minute, Country Garden canceled the meeting.
Distressed Chinese developer Country Garden Holdings postponed a meeting at the last minute with bondholders who were to vote an extension plan involving a 3.9 billion yuan note due next week, adding to risks of a possible default.
The NY Times published a story today about how the cash crunch is already hurting companies who were directly dependent on these large property developers for their livelihood.
Low on the payback priority list for developers but an important part of the housing ecosystem, the group includes painters, cement makers and builders, as well as real estate agents and companies that furnished sales offices.
One small company that provides trees to developers has started only accepting business from companies that pay up front in cash.
https://hotair.com/john-s-2/2023/08/28/another-bad-day-for-chinese-property-developers-n574357
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