Country Garden Proposes $11.6 Billion Offshore Debt Restructuring Plan

The Chinese developer outlines options for creditors to reduce debt and stabilize operations ahead of a critical liquidation hearing.

Country Garden has proposed a restructuring plan to cut its offshore debt by up to $11.6 billion, aiming to achieve significant deleveraging.
The plan provides creditors with five options, including converting debt into cash with a 90% haircut or extending debt maturity by up to 11.5 years.
The company has reached an understanding on key terms with a group of seven long-term lender banks, pending further negotiations on definitive terms.
Chairperson Yang Huiyan is considering converting her $1.1 billion shareholder loan into equity to support the restructuring effort.
The proposal comes ahead of a January 20 liquidation hearing in Hong Kong, where the company seeks more time to implement its restructuring plan.