Country Garden Secures Debt Restructuring Deal with Creditors

Chinese property developer Country Garden has made significant strides in restructuring its offshore debt, reaching agreements with creditors holding nearly 30% of its existing bond debt, totaling approximately $14.07 billion. The restructuring plan aims to maximize creditor recoveries and stabilize the company's operations, with options including extending debt maturity by up to 11.5 years and introducing new debt instruments. Additionally, Country Garden is finalizing negotiations with a group of seven banks regarding three syndicated loans worth $3.6 billion. The company has faced financial challenges since the implementation of China's 'three red lines' policy, which has led to significant losses in recent years. As part of its recovery efforts, Country Garden is also restructuring onshore debt, with plans to reorganize nine bonds totaling about $1.7 billion. The latest developments signal a potential turnaround for the once-leading Chinese home builder, which saw a dramatic reduction in losses attributed to shareholders in 2024 compared to the previous year.