Chinese Property Firm Country Garden Expects Creditor Agreement by June
Chinese real estate giant Country Garden, facing debt repayment issues, anticipates reaching a consensus with creditors next month, according to its lawyer's statement at a Hong Kong court hearing on Monday.
The hearing, intended to assess progress in negotiations with creditors, was adjourned until May 26 by Judge Linda Chan following a request by Country Garden's lawyers.
Earlier in May, Country Garden proposed a debt restructuring that would reduce its offshore debt of $16.4 billion by 70%. The company claims to have an "understanding" with a group of lenders.
Country Garden, once China's leading property developer, defaulted on $11 billion in offshore bonds late last year. This incident exacerbated an ongoing debt crisis in the sector, which had witnessed defaults by several other major developers, including China Evergrande Group.
Ever Credit Limited, a subsidiary of Hong Kong-listed Kingboard Holdings, filed a petition against Country Garden in February 2023 for non-payment of a $205 million loan.