Country Garden Has Just Days to Avoid Default on Dollar Bonds

The clock is ticking on Chinese developer Country Garden Holdings Co. to avoid what would be its first default.

The builder that has about $187 billion of total liabilities — making it among the most indebted property firms in the world — must pay a combined $22.5 million in dollar note interest within a grace period that ends Sept. 5-6. That’s the next major test after it honored some coupon payments in recent days and secured an extension on some yuan obligations.

Failure to pay the dollar interest within the grace period would allow creditors to call a default, ...