Country Garden's liquidation hearing delayed to August 11 as creditor talks continue
Country Garden
said on Monday the
Hong Kong High Court
has adjourned a hearing into a liquidation petition against it until August 11, a move that would allow the Chinese property developer more time to get support from its bank creditors.
The company defaulted on its offshore debt in late 2023 and is now in a restructuring process that aims to cut $14.1 billion of that debt by 78%.
Getting enough creditor support on the restructuring proposal is essential for Country Garden to convince the court to reject the petition, which was filed last year by
Ever Credit
, a unit of Hong Kong-listed
Kingboard
.
The embattled developer has received support from holders representing nearly 75% of its $10.3 billion offshore bond debt on the proposal so far, but it has yet to reach an agreement with a key bank group holding 48% of its $3.6 billion syndicated loans, two sources with knowledge of the matter said.
Country Garden's restructuring proposal will require support from more than 75% in creditor value in both classes - bank lenders and bondholders plus Ever Credit - to pass.
The sources declined to be named as the information is private. Country Garden declined to comment.
Country Garden on Friday extended the early-bird deadline again for creditors to sign the restructuring agreement to June 6 and the general deadline to June 20.
Once China's top developer by sales, Country Garden's downturn in fortunes intensified a debt crisis that was already gripping rivals such as Evergrande.
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