Country Garden’s Offshore Debt Restructuring Plan Approved, Expected to Cut Debt by Over $11.7 Billion
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Country Garden, one of China’s largest private property developers, announced that its offshore debt restructuring plan was successfully approved at a creditors...
Country Garden, one of China’s largest private property developers, announced that its offshore debt restructuring plan was successfully approved at a creditors’ meeting held on November 5. The restructuring covers a total debt amount of approximately $17.7 billion.
According to the company, both creditor groups voted in favor of the plan, surpassing the required 75% approval threshold. In Group 1 (syndicated loans), votes in favor represented 83.71% of the debt value, while in Group 2 (U.S. dollar bonds and other claims), the approval rate reached 96.03%—a key milestone marking substantial progress in the developer’s offshore restructuring process.
If all options in the plan are fully subscribed, Country Garden expects to reduce its debt by about $11.7 billion upon completion and recognize up to $9.8 billion in restructuring gains, which would significantly strengthen its net asset position.
The restructuring package combines multiple instruments, including cash buybacks, equity-linked tools, and new bond exchanges. In a show of support, the controlling shareholder has also agreed to convert $1.148 billion in shareholder loans into equity. Analysts view the approval as a landmark event for China’s private real estate sector, likely to improve market confidence and credit sentiment across the industry.
Source：Country Garden
