Latest news with #LindaChan
Business Times
26-05-2025
- Business
- Business Times
Country Garden bank creditors warn of deal breaker on debt plan
[HONG KONG] Chinese developer Country Garden Holdings' efforts to win backing for a US$14.1 billion offshore restructuring are running into resistance as key bank creditors say failure to accept some of their demands would be a 'deal breaker.' The company, once China's largest property developer by contracted sales, got a few months' reprieve from its liquidation petition hearing on Monday (May 26), as High Court Judge Linda Chan decided to adjourn the case to Aug 11. At the same time, a key group of banks, known as the co-ordination committee, injected some urgency to the process, saying that the company hasn't yet agreed to its proposal on details of a US$178 million deal on the return of seized collateral. The group's lawyer said that if there is no agreement on the issue, the restructuring 'is bound to fail.' The co-ordination committee is crucial to Country Garden's restructuring because it has the power to block any potential deal. The company 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 committee's members hold or control about 48 per cent of three syndicated loans with total principal of US$3.6 billion. Unsettled issues on the compensation deal include details on credit enhancements, payment schedule and seniority, etc. Chan said that her decision to adjourn the case took into consideration the amount of the debt and number of creditors involved. She said she would like to see some 'useful and good progress' in the next hearing. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The company, with the agreement of bondholders, had asked for a six-month extension, while the lawyer for the bank group sought a three-week delay. Country Garden has been in talks with creditors since it defaulted on its US dollar debt about 19 months ago. The issue of compensation for banks releasing collateral backing certain loans has been in focus since early in the process. Under the company's scheme of arrangement, there are two classes of creditors, divided into banks and bondholders, according a filing. 'Class 1' comprises banks, including the co-ordination committee. 'Class 2' includes existing US dollar bondholders, Hong Kong US dollar convertible bondholders and Ever Credit, which filed the wind-up petitioner against the company in February last year and holds a bilateral loan. The company's restructuring is one of the biggest by a Chinese developer since the beginning of the real estate crisis. Country Garden has said that it plans to submit documents to the court in mid-August to hold a convening hearing, which would allow a creditor vote on its debt plan. It has previously said that it aims to complete the restructuring in December. BLOOMBERG
Free Malaysia Today
26-05-2025
- Business
- Free Malaysia Today
Country Garden gets more time for US$14.1bil restructuring
Country Garden said in April it was close to sealing a deal with seven partner banks in the co-ordination committee to finalise negotiations. (EPA Images pic) BEIJING : Chinese developer Country Garden Holdings Co was given more time by a Hong Kong court to work on its US$14.1 billion offshore restructuring after amassing additional creditor support for the plan. High Court judge Linda Chan adjourned a liquidation hearing against the company to Aug. 11, taking into consideration the amount of the debt and number of creditors involved, and said she would like to see some 'useful and good progress' in next hearing. The defaulted builder, once China's largest by contracted sales, has said that it has so far secured backing from holders representing over 70% of its debt. Bank creditors, however, had yet to sign on to the plan as of May 22, Bloomberg reported earlier. The company and bondholders had asked for a six-month extension to the hearing, while bank creditors sought a three-week reprieve. Country Garden has been in talks with creditors since it defaulted on its dollar debt about 19 months ago. The company received a liquidation petition in early 2024, adding urgency to what is one of the biggest restructurings of a Chinese developer since the beginning of the real estate crisis. It has previously said that it aims to complete the restructuring in December. The company needs the support of creditors holding three-quarters of all debt as well as majorities of individual groups of debt holders to pass the plan through a 'scheme of arrangement' procedure. The builder said in April that it was close to finalsing negotiations with the seven banks that make up a key group called the co-ordination committee, comprising long-term business partners of the developer. The committee holds or controls about 48% of three syndicated loans with total principal of $3.6 billion, according to a company filing.
Hindustan Times
26-05-2025
- Business
- Hindustan Times
Country Garden gets more time for $14.1 billion restructuring
(Bloomberg) -- Chinese developer Country Garden Holdings Co. was given more time by a Hong Kong court to work on its $14.1 billion offshore restructuring after amassing additional creditor support for the plan. High Court Judge Linda Chan adjourned a liquidation hearing against the company to Aug. 11, taking into consideration the amount of the debt and number of creditors involved, and said she would like to see some 'useful and good progress' in next hearing. The defaulted builder, once China's largest by contracted sales, has said that it has so far secured backing from holders representing over 70% of its debt. Bank creditors, however, had yet to sign on to the plan as of May 22, Bloomberg reported earlier. The company and bondholders had asked for a six-month extension to the hearing, while bank creditors sought a three-week reprieve. Country Garden has been in talks with creditors since it defaulted on its dollar debt about 19 months ago. The company received a liquidation petition in early 2024, adding urgency to what is one of the biggest restructurings of a Chinese developer since the beginning of the real estate crisis. It has previously said that it aims to complete the restructuring in December. The company needs the support of creditors holding three-quarters of all debt as well as majorities of individual groups of debt holders to pass the plan through a 'scheme of arrangement' procedure. The builder said in April that it was close to finalizing negotiations with the seven banks that make up a key group called the co-ordination committee, comprising long-term business partners of the developer. The committee holds or controls about 48% of three syndicated loans with total principal of $3.6 billion, according to a company filing. (Updates with news from the hearing) More stories like this are available on ©2025 Bloomberg L.P.
Business Times
26-05-2025
- Business
- Business Times
Country Garden gets more time for US$14.1 billion restructuring
[HONG KONG] Chinese developer Country Garden Holdings was given more time by a Hong Kong court to work on its US$14.1 billion offshore restructuring after amassing additional creditor support for the plan. High Court Judge Linda Chan adjourned a liquidation hearing against the company to Aug 11, taking into consideration the amount of the debt and number of creditors involved, and said she would like to see some 'useful and good progress' in the next hearing. The defaulted builder, once China's largest by contracted sales, has said that it has so far secured backing from holders representing over 70 per cent of its debt. Bank creditors, however, had yet to sign on to the plan as at May 22, Bloomberg reported earlier. The company and bondholders had asked for a six-month extension to the hearing, while bank creditors sought a three-week reprieve. Country Garden has been in talks with creditors since it defaulted on its US dollar debt about 19 months ago. The company received a liquidation petition in early 2024, adding urgency to what is one of the biggest restructurings of a Chinese developer since the beginning of the real estate crisis. It has previously said that it aims to complete the restructuring in December. The company needs the support of creditors holding three-quarters of all debt as well as majorities of individual groups of debt holders to pass the plan through a 'scheme of arrangement' procedure. The builder said in April that it was close to finalising negotiations with the seven banks that make up a key group called the co-ordination committee, comprising long-term business partners of the developer. The committee holds or controls about 48 per cent of three syndicated loans with total principal of US$3.6 billion, according to a company filing. BLOOMBERG
Yahoo
24-03-2025
- Business
- Yahoo
Kaisa Wins Hong Kong Court Approval for Offshore Debt Plan
(Bloomberg) -- Defaulted Chinese developer Kaisa Group Holdings Ltd. won a Hong Kong court's approval for its offshore restructuring, according to people familiar with the matter, clearing the way for it to proceed with its debt plan. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style The development comes after Hong Kong High Court Judge Linda Chan reserved a decision on the restructuring on Friday, saying that she needed to check on some matters, without elaborating. Companies often receive approval for such plans as the hearings wrap up. On Friday Chan had asked the company about a work fee to be paid to an ad-hoc group of creditors. The company had earlier reduced the fee to 1%. The High Court didn't reply to a request for comment. Once a symbol of the boom years in China's credit markets, Kaisa was sued in 2023 by creditors to liquidate after a 2021 bond default. With more than $12 billion of offshore borrowings subject to restructuring, Kaisa carries one of the largest debt loads in the industry. Even if a company gets court approval, it still faces challenges. A number of builders that also passed this stage in their restructurings are heading back to square one, after fresh liquidity problems amid a prolonged property crisis made it harder for them to honor their promises. Kaisa will still face a winding-up hearing on March 31. A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers Tesla's Gamble on MAGA Customers Won't Work One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P.
