Country Garden wins bank creditor group's support for offshore debt overhaul

Embattled Chinese property developer Country Garden (2007) said on Monday it had reached an agreement with a core group of bank creditors that holds 49 percent of its offshore debt, marking another step in its US$14.1 billion (HK$110 billion) restructuring plan.

Once China's largest developer, the company defaulted on US$11 billion in offshore bonds in late 2023, adding to a sector-wide crisis that had already seen high-profile failures, including of China Evergrande Group (3333).

Country Garden, seeking to slash its offshore debt burden by 78 percent, said holders representing 77 percent of its bond value had accepted its restructuring proposal.

A restructuring proposal normally requires support from more than 75 percent in creditor value to pass.

The deal follows the backing it won from a key bondholder group in April.

Country Garden remains the subject to a liquidation petition, with a court hearing scheduled for January 2026. The developer said it was working with both bondholders and bank creditors to complete the documentation for the restructuring, which it expects to finalize by the end of 2025.
Reuters