Country Garden secures creditors' backing for offshore debt restructuring plans

The company defaulted on $85.82b offshore bonds in 2023.

Chinese property giant Country Garden Holdings said it has reached an agreement in principle on the terms of its proposed offshore debt restructuring with the coordinating committee, which represents 49% of the group’s existing syndicated loans.

The company also said holders of more than 77% of Class 2 indebtedness have signed on to its Restructuring Support Agreement (RSA).

In a bourse filing, the developer said it signed an amendment agreement with the majority ad hoc group on 18 August.

The amendments allow RSA fees to be paid in company shares if mandatory convertible bonds cannot be issued, split deadlines for Class 1 and Class 2 creditors, and extend the deadlines to 25 August 2025.

The company said it will continue to extend Class 1 deadlines as some syndicated loan lenders supportive of the plan are still completing internal approvals.

It added that Class 2 deadlines cannot be extended beyond 25 August without majority creditor consent, and creditors joining after that date will not be eligible for RSA fees.

Country Garden defaulted on $85.82b (US$11b) in offshore bonds in late 2023.