From Yahoo Finance: 2025-04-10 18:34:00

Chinese property developer Country Garden reached an agreement with key bondholders and is close to finalizing negotiations with bank creditors to cut $14.1 billion debt by 78%. The deal, though delayed, aims to show progress in defense against a liquidation petition. The company’s shares rose 2.3% after offering creditors five restructuring options.

Country Garden’s chairperson, Yang Huiyan, will convert her $1.15 billion shareholder loan and buy a 60% stake in the Malaysian unit for $50 million. Her stake in the company will decrease to at least 40% after debt restructuring. The company urged other creditors to sign the agreement by May 23, offering a 0.1% early-bird incentive.

The restructuring proposal requires support from over 75% of creditor value to pass. Once China’s top developer, Country Garden’s fortunes declined, intensifying a debt crisis. The company reported a narrowed net loss of 32.8 billion yuan in 2024, battling a liquidation petition from Ever Credit.($1 = 7.3140 Chinese yuan renminbi)



Read more at Yahoo Finance: Country Garden secures key bondholder group support for offshore debt overhaul