China’s Country Garden faces Payment Deadline after two Default 

Chinese property developer Country Garden faces yet another liquidity test with a deadline to pay $15m in interest linked to an offshore bond after having dodged default at the last minute twice this month.

The country’s top private developer, whose financial woes have worsened the property sector outlook and prompted Beijing to unveil a raft of support measures, will have a 30-day grace period after Monday’s deadline to pay the coupon before it would be considered in default.

If Country Garden fails to pay the $15m before the grace period ends in mid-October, the principal will become due immediately and any failure to service the bond will trigger cross-default terms on other credit, said Sandra Chow, co-head of Asia-Pacific research at CreditSights.