Country Garden’s Founding Family Supports Developer with $300 Million Loan and Jet Sale
Family Loans $300 Million Interest-Free
The founding family of Country Garden, China’s largest private property developer, recently provided a $300 million interest-free loan to the embattled company, according to Chinese online news outlet The Paper. The loan aims to support liquidity for the developer, which has faced challenges in meeting offshore debt obligations.
Jet Sale to Boost Liquidity
In addition to the loan, the founding family is reportedly trying to sell their private jet. Founder Yeung Kwok Keung has already sold one jet and is attempting to sell another, as reported by Cailianshe, another online news outlet. These efforts are part of the family’s strategy to enhance liquidity amidst the company’s financial struggles.
Default Risk Looms
Country Garden, which has missed coupon payments on some dollar bonds since last month, is facing potential default. The company has a 30-day grace period to make the missed payments, with the first deadline approaching next week. This development raises concerns about one of the largest debt restructurings in China’s real estate market.
Founder and President Inspect Development Site
A video posted on Country Garden’s official WeChat account showcased founder Yeung and president Mo Bin inspecting a development site near the company’s headquarters in Shunde, Guangdong province. The visit, which took place two days ago, demonstrates the company’s commitment to its ongoing projects and operations.
Focus on High-Tech Construction
Chairperson Yang Huiyan, Yeung’s daughter, emphasized the importance of completing homes, maintaining business operations, and expanding high-tech construction during a recent monthly internal meeting. This focus on technological advancements highlights Country Garden’s commitment to innovation and growth in the real estate sector.