Default is a taboo most companies are keen to avoid. But sometimes, business operations demand it. Even the bond investors don’t mind.
Country Garden Holdings Co., once China’s biggest real-estate developer by sales, is walking a tightrope. A scrapped share placement last week fueled concerns whether the company has enough money to repay its dollar bonds in the next year, even as ratings agency Moody’s Investors Service says it does. In this case, though, a default would make more sense.