Facing a potential financial collapse, the embattled Chinese property developer Country Garden on Thursday denied rumors that its two most prominent executives had fled China.
Country Garden took the unusual step of issuing a statement on its WeChat social media account declaring that Yang Guoqiang, the company’s founder, and his daughter Yang Huiyan, its chairwoman and majority shareholder, were “currently working normally in China.” It said rumors that the two had left the country were having “an adverse impact” during “a difficult period” for the company.
The statement, issued on Thursday, came a day after the company faced a deadline to make a $15 million interest payment on an overseas bond. Missing the payment would allow creditors to declare the debt-laden firm in default.
In a sign of China’s deepening property crisis, Country Garden, once the country’s biggest home builder, is scrambling to stave off collapse amid a sharp downturn in sales. For the last few months, it has been unloading assets and selling shares to raise money to meet its significant debt obligations.
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