Struggling Chinese property developer Country Garden Holdings is set to propose plans that would spread out the redemption of a privately placed bond totaling RMB 3.9 billion ($535 million) over a three-year period, Chinese news media reported, reports Nikkei Asia. Shanghai news site The Paper and others have reported the plans for the bond that will come due Sept. 2. Under the scheme, each creditor would be paid RMB 100,000 first, with the remaining sum repaid in seven installments over three years.
Country Garden will meet with creditors next week to discuss the proposal, according to the reports. The country’s largest private property developer is saddled with debt, leaving many homes unfinished and suppliers and creditors unpaid. Its path to debt restructuring remains uncertain.
Another embattled developer, China Evergrande Group, on Thursday filed for bankruptcy protection in New York, raising concerns that the crisis in the Chinese real estate sector could spill over to the financial system.