Troubled Chinese property developer Country Garden Holdings Co. Ltd. said its offshore debt restructuring plan has won strong creditor backing, clearing a major hurdle in its $17.7 billion debt overhaul, reports Caixin. At a creditors’ meeting on Wednesday, 83.7% of lenders in the syndicated loan group and 96% of dollar bondholders voted in favor of the plan, well above the 75% approval threshold required under Hong Kong’s Companies Ordinance. Final court approval is expected on Dec. 4.
The restructuring covers 34 debt instruments governed under New York, UK, and Hong Kong law, involving a mix of Chinese and foreign banks, hedge funds, and insurance firms.
Country Garden said it offered creditors multiple options, including cash buybacks, full debt-to-equity swaps, and hybrid structures. If fully subscribed, the restructuring would reduce total principal and interest obligations to $11.7 billion and lower financing costs to 1% and 2.5% annually, with an average maturity of more than six years.