HONG KONG (AP) — Embattled Chinese property developer Country Garden expects to reach a deal with its creditors in February to restructure billions of dollars in debt, the company’s lawyer told a Hong Kong court Monday.
One of the largest Chinese real estate companies, Country Garden defaulted on $11 billion in offshore bonds in 2023 and said earlier this month that its debt restructuring proposal would reduce its $16.4 billion offshore debt by 70%.
The Hong Kong court adjourned Country Garden’s case until May 26 after the company asked for more time to strike a deal with creditors.
Country Garden is one of dozens of property companies caught up in a crackdown on excess borrowing that led many to default on its debts. It said last week that it posted a net loss of 12.84 billion yuan ($1.76 billion) in the first six months of 2024. In 2023, it reported a net loss of 178.4 billion yuan ($24.4 billion).
The firm had delayed posting the results its 2023 and 2024 interim results.
The debt-ridden property sector, once one of the strongest engines of growth for the world’s second-largest economy, is struggling to pull out of a prolonged downturn.
Home prices across China have fallen, even as policymakers have introduced measures such as reducing mortgage costs, lending to property developers and making it easier to buy homes.
Source: finance.yahoo.com