AsianFin -- Chinese property developer Country Garden, which defaulted on its debt repayment obligations, expects to reach a resolution with creditors by next month, the company’s lawyer informed a Hong Kong court on Monday.
The court session, aimed at reviewing progress in creditor negotiations, was adjourned to May 26 by Hong Kong Judge Linda Chan. This followed a request from Country Garden's legal team to extend the original date from May 19.
Earlier this month, Country Garden proposed a debt restructuring plan to creditors, which includes a 70% reduction of its $16.4 billion offshore debt. The company also reported reaching an “understanding” with a group of lenders.
Once China’s largest property developer, Country Garden defaulted on $11 billion in offshore bonds in late 2023. This added to the debt crisis in the real estate sector, which has already seen significant defaults, including those by China Evergrande Group.
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