Country Garden re-engages Houlihan, CICC as financial advisers

Country Garden (2007) has again engaged Houlihan Lokey and China International Capital Corporation (3908) as financial advisers on its offshore debt restructuring, according to people familiar with the matter, renewing ties with the two firms as it seeks to build creditor support for its debt plan.

The defaulted property giant had previously hired Houlihan and CICC in 2023, but later parted ways. The advisory relationship with Houlihan was discontinued partly due to costs, according to the people, who asked not to be identified because the matter is private.

Country Garden then appointed KPMG Advisory (China) to the role in January 2024.

Houlihan declined to comment. Country Garden, CICC and KPMG didn’t immediately offer comment.

Country Garden, which defaulted on dollar debt in 2023, has struggled to secure broad support for its restructuring. It told a court that it expected to reach an agreement with creditors by the end of February, but has made little progress since January with a key group of creditors, Bloomberg reported last week.

The two sides have been divided over terms of the restructuring, including the conversion prices of mandatory conversion bonds and debt payment dates, as well as other issues.

Country Garden’s next winding up hearing is currently scheduled for May 26, but a judge earlier said that the timing could be accelerated if creditors aren’t happy with state of the talks by the end of February.

BLOOMBERG