Country Garden expects to reach terms with creditors in Feb, lawyer tells court

HONG KONG: Chinese property company Country Garden, which has defaulted on debt repayment obligations, expects to reach agreeable terms with creditors next month, the firm’s lawyer told a Hong Kong court on Monday.

The court hearing, which was held to measure progress in reaching an agreement with creditors, was then adjourned until May 26 by Hong Kong judge Linda Chan after a request from Country Garden’s lawyers to extend the date from May 19.

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Country Garden said earlier this month it has proposed to creditors a debt restructuring that would cut its offshore debt worth $16.4 billion by 70%, and it had reached an “understanding” with a lender group.

Once China’s biggest property developer, Country Garden defaulted on $11 billion in offshore bonds in late 2023, deepening a debt crisis in the sector that had already experienced defaults by many developers, including China Evergrande Group.

Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings, filed a petition against Country Garden in February last year for non-payment of a $205 million loan.