Country Garden Seeks Creditor Agreement to Restructure $16.4 Billion Offshore Debt

The embattled Chinese property developer aims to finalize a restructuring plan by February, with court approval anticipated in April.

Country Garden, once China's largest property developer by sales, defaulted on $11 billion in offshore bonds in 2023, deepening its financial crisis.
The company has proposed a restructuring plan that would reduce its $16.4 billion offshore debt by 70%, with options including debt conversion and extended maturities.
A Hong Kong court adjourned a liquidation petition hearing to May 26, granting the company more time to negotiate terms with creditors.
Key negotiation issues include compensation for lenders releasing security packages, convertible bond conversion prices, and terms for new notes.
China's broader property sector faces ongoing challenges, with falling home prices and weakened buyer confidence despite government stimulus measures.