(Nov 14): Chinese developer Country Garden Holdings Co is planning to issue as much as US$13 billion of mandatory convertible bonds, as it moves ahead with one of the nation’s biggest-ever restructurings amid a real estate crisis that sparked record defaults.
The builder is also proposing to issue new shares to pay work fees owed to certain creditors, according to a Hong Kong stock exchange filing Friday.
Once China’s biggest home seller by sales, Country Garden received creditor support last week for its offshore restructuring plan that could cut debt by more than US$11 billion if successful.
Negotiations on the restructuring of the company’s US$14.1 billion of offshore debt had taken more than two years, as it sought to avoid the fate of its peer China Evergrande Group, which was ordered to liquidate in 2024.
Creditors tied up in China’s property restructurings have grown weary of lengthy debt talks and are increasingly accepting restructuring terms on offer, or in other cases pushing for speedy liquidations. Eight of China’s 10 most indebted developers have largely, if not entirely, put the offshore restructuring process behind them.
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