Country Garden secures US$1.14 billion loan-to-equity conversion as part of restructuring
The property developer has defaulted on billions in offshore bonds in late 2023
[BENGALURU] Embattled Chinese property developer Country Garden said on Monday (Oct 13) that its controlling shareholder had agreed to convert US$1.14 billion in loans to equity as part of its offshore debt restructuring.
Concrete Win Limited, an entity controlled by Country Garden’s controlling shareholder, has committed to buying new shares to settle US$1.14 billion in shareholder loans once the restructuring takes effect, the company said in a filing to the Hong Kong stock exchange.
The shares will be issued at HK$0.60 each, a marginal premium to Monday’s closing price of HK$0.59.
Country Garden has scheduled creditor meetings for Nov 5 to vote on its restructuring plan, with separate votes for holders of the 2023 and 2026 convertible bonds on the same day.
A court hearing related to the liquidation petition is set for January 2026.
Country Garden reached a deal in mid-August with a core group of bank creditors holding nearly half of its offshore debt, marking progress in its US$14.1 billion restructuring plan.
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Earlier in the day, the company said that it logged contracted sales attributable of 2.6 billion yuan (S$475.6 million) in September, a 29 per cent decrease from the previous year.
Once China’s largest developer, Country Garden defaulted on billions in offshore bonds in late 2023, joining a sector-wide crisis that has seen high-profile failures, including China Evergrande Group.
A Hong Kong court ordered Evergrande to liquidate in 2024 and it was delisted from its stock exchange in August, one of the largest removals by market value and volume in recent years, marking the end of a dramatic boom-and-bust saga for investors.
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Media reports last month said that peer China Vanke was in talks with major domestic creditors to lower borrowing costs on billions of yuan in private debt. REUTERS
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