Country Garden seeks delay of wind-up case to later this year: sources
The company needs approval from 75% of its bank lenders and bondholders to secure its restructuring deal
[HONG KONG] Country Garden Holdings plans to ask Hong Kong’s High Court to delay its liquidation case until later this year, people familiar with the matter said, a move that would give the Chinese developer more time to work on its restructuring.
The company intends to apply for the adjournment this week and will need its creditors to provide a letter of support for the schedule change, according to the people.
The next hearing in the case was originally set to be held on Aug 11. It will be up to the court to decide whether to grant an adjournment and for how long.
Once China’s largest developer by contracted sales, Country Garden has been in talks with creditors to restructure US$14.1 billion of offshore debt since it defaulted in 2023.
The pressure to reach a deal has been mounting as the liquidation proceedings progress, and as China’s years-long property crisis drags on.
Last month, Country Garden agreed to some restructuring terms that key bank creditors had demanded, Bloomberg News reported, potentially resolving issues the group had said could be a “deal breaker.”
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The next step would be for banks to sign on to the broader restructuring deal.
Country Garden did not immediately reply to a request for comment.
To get its restructuring deal approved, Country Garden needs support from three-quarters of debt holders in two individual groups – bank lenders and bondholders.
It has said that it has backing from holders of 70 per cent of bonds, but even if it gets more from that class, it still needs bank creditors to get on board to pass the plan through a “scheme of arrangement” procedure.
The builder said previously that it is aiming to complete the offshore restructuring in December. BLOOMBERG
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