Country Garden misses self-imposed target date on debt overhaul

HONG KONG – Country Garden Holdings has missed a self-imposed target date to reach a deal on its debt restructuring plan, as the defaulted builder struggles to gain support from creditors, according to people familiar with the matter.

The Chinese property company,

which defaulted on dollar debt in 2023,

told a court in January that it expected an agreement by the end of February. However, it has made little progress since with a key group of creditors, the people said, asking not to be identified because the matter is private.

Bloomberg reported in late February that the developer was set to miss the end-February goal. The two sides have been divided over terms of the overhaul, including the price of mandatory conversion bonds and debt payment dates, Bloomberg reported in January. 

A representative for Country Garden declined to comment. 

Country Garden has re-engaged Houlihan Lokey and China International Capital Corporation as financial advisers, people familiar said on March 3, as it seeks to build creditor support for the restructuring and stave off liquidation. 

Country Garden’s next winding-up hearing is scheduled for May 26, but a judge previously said that the timing could be accelerated if creditors are not happy with the state of the talks by the end of February. 

The developer is struggling to turn around a slump in sales, which dropped 38 per cent in February from a year earlier, a filing showed this week. BLOOMBERG