Debt-laden Chinese property developer Country Garden said Monday it won support from a core group of bank creditors holding nearly half of its offshore debt, a milestone in its $14.1 billion restructuring push.
Country Garden defaulted on $11 billion of offshore bonds in 2023 after becoming China’s largest builder which worsened a sector crisis that also affected Evergrande. It is now seeking to cut its offshore debt by 78%.
The company announced that bondholders controlling 77% of bond value had accepted its proposal which exceeded the standard threshold for proceeding. The latest agreement comes after bondholder backing earlier this year.
The court will hold a hearing about the liquidation petition against Country Garden in January 2026. The developer said it expects to finalize restructuring documents with both banks and bondholders by late 2025.
The support signals cautious confidence in Country Garden’s plan to stabilize its finances and continue building projects, though analysts warn the firm’s future remains uncertain amid weak property demand and Beijing’s reluctance to mount a large-scale rescue.
