Chinese property developer Country Garden said on Friday it had reached an agreement with creditors holding nearly 30% of its existing offshore bond debt and was close to finalising terms with another group of bank creditors.
The proposed restructuring covers aggregate outstanding principal amount of $14.07 billion of its existing debt, Country Garden said.
The company had proposed the plan to cut its offshore debt by $11.6 billion in January. Creditors holding 29.9% of $10.3 billion in bonds had agreed to the plan, it said.
It was also close to finalising a deal with a lender group made up of seven banks who hold three syndicated loans with an outstanding principal amount of $3.6 billion.
The real estate firm has offered five restructuring options to its bondholders including extending the maturity by as much as 11-1/2 years alongside choosing mandatory convertible bonds and new debt instruments.
Country Garden’s downturn in fortunes, culminating in an $11 billion default after its reign as China’s top developer by sales, intensified a debt crisis that was already gripping rivals such as Evergrande.
Reuters
