Country Garden is in talks to restructure $16.4 billion in offshore debt, aiming to prevent liquidation.

From Investing.com: 2025-01-20 06:21:33

Country Garden, China’s largest developer by sales, is in talks to restructure $16.4 billion in offshore debt. The company aims to finalize terms with creditors next month and seek court approval in April. This move would prevent liquidation, allowing Country Garden to focus on the struggling property sector.

The developer defaulted on $11 billion in offshore bonds in 2023, contributing to a broader debt crisis in the real estate industry. Evergrande, another major player, faced liquidation in January 2022 after failing to propose an acceptable debt restructuring plan.

To avoid liquidation, Country Garden is negotiating with creditors to cut offshore debt by 70%. The main sticking points include the release of security by lenders, conversion prices of bonds, and terms of new notes. The company has until the end of February to reach an agreement with creditors.

Ever Credit, a unit of Kingboard, filed a petition against Country Garden in February for failing to repay a $205 million loan. The Hong Kong High Court granted an adjournment until May 26 to allow the company to progress with its restructuring efforts.



Read more at Investing.com: Country Garden expects to reach terms with creditors in February, lawyer tells court By Reuters