Country Garden expects to reach an agreement with creditors in February, a lawyer told Reuters in court
From Clare Jim
HONG KONG (Reuters) – A Chinese real estate company Country garden (HK:), which has defaulted on debt repayment obligations, expects to reach agreed terms with creditors next month, the company’s lawyer told a Hong Kong court on Monday.
The court hearing, which was held to gauge progress in reaching an agreement with creditors, was then adjourned until May 26 by Hong Kong judge Linda Chan following a request by Country Garden’s lawyers to postpone the date from May 19.
Country Garden said earlier this month that it had proposed a debt restructuring to creditors that would reduce its $16.4 billion offshore debt by 70%, and had reached an “agreement” with a group of lenders.
Once China’s biggest developer, Country Garden defaulted on $11 billion in offshore bonds due at the end of 2023, deepening a debt crisis in a sector that has already seen defaults by many developers, including China Evergrande (HK:) Group.
Ever Credit Limited, a unit of Hong Kong-listed Kingboard Holdings, filed a petition against Country Garden in February last year for defaulting on a $205 million loan.
