Reported 11 months ago
Real estate market crisis has led to over 4,000 construction companies bankrupting worldwide in just a year, including major Chinese real estate giant Country Garden facing a debt of 6.4 billion New Taiwan Dollars that they cannot repay, pushing them to seek liquidation and selling shares worth up to 9 billion New Taiwan Dollars to save the group. The situation arose from defaulting on 225 million USD (approximately 7.2 billion New Taiwan Dollars) bond interest payments last year, causing a financial panic and dropping stock prices to historic lows, with a court hearing on July 29 for imminent closure. The company's efforts to optimize the asset-liability structure include selling shares in a storage technology company to raise approximately 2 billion Chinese Yuan (around 9 billion New Taiwan Dollars); however, failure to improve cash flow may result in imminent bankruptcy for Country Garden.
Source: YAHOO